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

Endnotes

1 Insurers have stated that the key reasons for refusing run-off would be in circumstances of a poor claims history (particularly instances of fraud or disciplinary action) or perceived difficulties in paying premiums or excesses.

2 Negligence claims can have up to a 15-year life span via the 1980 Statute of Limitations Act. However, in many circumstances the limit is six years.

3 As evidenced by RICS' call for information to insurers.

4 This figure is based on a doubling of the existing ARP limit (from £1,000,000). Our current ARP manager has recommended that this increase would be enough if run-off was to be included. This was further substantiated by the consultation responses summarised in the Appendix.

5 This would be in line with recent proposals from the Solicitors Regulatory Authority, both for PII run-off and their compensation fund.

6 More information on can be found on this here and how RICS manages successor practices is located here.