2017/18 Annual Report
The Professional Indemnity Insurance Committee (PIIMC) has, as required by the Legal Profession Act, put in place the PI insurance arrangements for the 2017/18 financial year. The negotiations were similar to previous years. The insurance placement includes consideration of the actuarial report prepared by our actuary, advice of our broker and our staff.
Ultimately, the annual contribution rate decreased by an average of approximately 10%, primarily due to prudent capital management enabling the subsidisation of the rate. We hope to be in a position to stabilise or further reduce rates in future years. However, this, as always will depend on claims outcomes and underwriting market conditions. I would mention also claims numbers in the last two years have shown an increase on the five year average.
PIIMC has 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 most visible sign of this is the ongoing successful risk management seminar programme. However, we have continued to increase risk management resources initiatives. Importantly, we have targeted higher risk firms for specific risk management reviews.
We are pleased that they have all accepted the recommendations that resulted and are working to improve their internal risk management.
The Law Mutual team has highly experienced insurance capabilities that enabled us to fully analyse the PI insurance arrangements to ensure they are fair and equitable to practitioners and their clients while maintaining a very broad coverage at a reasonable cost.
Financially, Law Mutual is in a very sound position and neither the annual audit nor actuarial reports for 2016/2017 were qualified.
Finally I wish to thank PIIMC committee members for their diligence and contribution for what has been another challenging but rewarding year.
In particular, I farewell Laurie Shervington and Ian Williams from the PIIMC, with my personal thanks for their guidance and help during their term on the Committee. I also welcome our two new members, Peter Forbes and Robert Evans, who commenced on 1 July 2018.
For more information about this committee please email email@example.com