Proposed changes for professional indemnity insurance (PII) run-off in the UK

6 Consultation questions

For all

6.1 What impact do you think the proposed change will have on regulated firms closing down sustainably?

6.2 Do you agree with our proposed minimum requirements for run-off cover, i.e. £2m claims limit with £500,000 ringfenced for consumers? Is this the correct structure? Would you suggest any alternatives?

6.3 Will the changes outlined promote confidence in firms and professionals regulated by RICS? Please explain.

6.4 The expansion of the role of the ARP will allow firms more access to their preference as highlighted in the consultation responses, of a prepaid PII run-off package. Can you foresee any negative consequences of this change?

6.5 Is this model fit for purpose in the event of a harder insurance market where policy availability would go down and premiums would go up? If no, please suggest how this could be achieved.

6.6 Our estimate is for a six-year run-off premium to cost 150-200% of the annual premium while trading. Do you agree? If no, please provide an estimate and your reasoning.

6.7 Please include any further comments you have on the proposals below.

For insurers

6.8 If these changes are introduced, will your company continue to offer PII to RICS professionals/firms?

6.9 In your opinion, what impact will this have on the number of insurers in the market?