Approved Inspectors Information Alert - Griffiths and Armour

able to continue to offer an insurance option to as many of our Approved Inspector clients as possible.

Underneath the headline grabbing changes, it is important to understand the backdrop. All sectors of the construction market have been through an incredibly challenging period over the last few years. From dealing with the consequences of Brexit, Covid-19 and the upheavals in the PI market, the recent past has been marked by extremely challenging renewal discussions. We have previously set out some of the reasons for the market changes and you can read more here. Against this general picture of difficulties in the UK construction market, Approved Inspectors bring with them additional features that add further complexity to what is already an uncertain sector outlook. Approved Inspectors are a relatively small group of firms, working in a niche area, which is subject to significant uncertainty and potential change over the course of the next few years. There is little understanding around the future of the role, how liability will flow, how competency requirements might change, and how AIs will be regulated. There is also currently no indication from the new Building Safety Regulator of their plans in relation to insurance, such as guidance around the expected insurance limits or terms to be required, or how this will be policed. The general uncertainties in the construction PI market, overlayed with the unique characteristics of the Approved Inspector exposures and requirements, combined with some potentially very large fire safety related claims being made against Approved Inspectors, do not make for easy conversations with the insurance market. Rest assured, we fully intend to continue as insurance sector advocates for the AI profession. A forecast for the future As we have for the last 30 years, Griffiths & Armour will continue to work on behalf of our clients and fully expect to be able to offer renewal terms to the majority of our AI clients. Inevitably, however, this fundamental shift for this particular segment of the PI market will bring change, so please be aware that: – The insurer panel who underwrite our Approved Inspector scheme will need to be modified, and whilst the current insurers want to remain involved, the price of that involvement is very likely to be reduced line sizes. Essentially, they want to take a smaller