Insurance as a Tool of Welfare Policy and The Idea of Public Insurance Law in the U.K.

Abstract

The study of insurance law has suffered from its focus on the contract. While it would be absurd to dismiss the importance of the contract, it limits the scope of analysis. This paper illustrates this by looking at the state's use of insurance as an instrument of welfare policy. It begins with mandatory insurance, such as motor and employers' liability insurance, where commercial insurance is used for public policy objectives (getting compensation to the victim), and National Insurance, where the state acts as insurer. Finally, the paper discusses flood insurance, which, although not mandatory, is regarded as sufficiently important for government and the insurance industry to agree a plan that allows general access to affordable cover.