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The Act will probably create a flurry of legal disputes as insurers look to test aspects of the new legislation, such as what constitutes fair presentation, relevant warranties and contracting out, explained Mr Hertzell, who is an adviser to insurance governance expert Mactavish and a consultant to law firm BLM.
Longer term, however, Mr Hertzell believes the Insurance Act should deliver higher professional standards when it comes to placing insurance contacts.
"The Act is intended to encourage professionalism among insurance buyers, brokers and underwriters. It expects a level of competence and while I appreciate it is harder in a soft market where insurers look to reduce costs, I would expect a change in market practices over time," said Mr Hertzell.
Many insurance policy wordings currently in the market fall short of the mark,” he argued.
Insurance contract wordings have been criticised in the past. There are bad wordings out there and many instances where policyholders and underwriters do not understand what is covered," he said.
Insurers and their customers have had 18 months to prepare for the Act. It introduces improved rights for policyholders but in return places greater obligations over disclosure.
However, recent months have seen the insurance market criticised for its response to the Act. During a panel debate at this year's Airmic conference in Harrogate, participants noted a lack of engagement by insurers, as well as an inconsistent approach from the market.
Insurers have also come under fire for not having developed market practices and clear guidance to help buyers apply the Act. Some in the market, however, note that the Act is complex and its implications will take some to work through.
"To be fair to insurers, the Act will evolve. And for one-off and bespoke risks there will not be market practices. But for more standardised risks, market practices and guidance could be developed," said Mr Hertzell.