RICS has now released the findings of the consultation with it’s members undertaken between November 2017 to January 2018. The aim of the consultation was to obtain the views of RICS members as to various different options for obtaining adequate Professional Indemnity run-off insurance cover once a regulated firm or member stops trading.
The consultation has found that there is substantial support for a fully pre-paid PII run-off product (for the minimum 6 years required). The UK and Ireland Regulatory Sub-Board will be publishing their findings shortly but one proposal is for member firms to be able to purchase the pre-paid run-off cover through the Assigned Risks Pool (ARP) which has previously been used by firms having difficulty in obtaining cover. The ARP is underwritten by a RICS listed insurers collectively.
It will be interesting to see how the RICS listed insurers respond to this news and what impact this will inevitably have on the professional indemnity insurance marketplace.
The full article issued by the RICS can be viewed here