2016/17 Annual Report
The Professional Indemnity Insurance Management Committee, as required by the Legal Profession Act, put in place the Professional Indemnity insurance arrangements for the 2017/18 financial year. The negotiations were similar to previous years and after a review the same panel of insurers as last year was retained.
The insurance placement includes consideration of the actuarial report prepared by the actuary, advice of broker, Marsh, and Law Mutual (WA) staff.
Ultimately, the annual contribution rate was unchanged, primarily due to ongoing prudent capital management and a relatively stable claims environment. The Committee hopes to be in a position to continue with stable rates in future years. However, this, as always, depends on claims outcomes and underwriting market conditions. Claims numbers in the last year have shown a slight increase on the previous five year average. The historical average claim size has also continued to increase.
The Committee continued its focus on risk management initiatives that will, over time, lower the incidence and cost of claims leading to more stable contributions, subject of course to the underwriting market. The 2016/17 risk management seminar programme introduced a number of different topics targeted at the diverse groups of firms and practitioners that are covered by the arrangements. The seminars were well-attended and 103 insured firms were able to claim a 5% discount on the 2017/2018 annual contribution for having met risk management training requirements. The Committee continued to increase the risk management resources available to Law Mutual (WA). A Manager, Risk was appointed and a Risk & Administration Officer will commence early in the 2017/18 year.
Financially, Law Mutual (WA) is in a very sound position and neither the annual audit nor actuarial reports for 2015/16 were qualified.
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