Griffiths & Armour Europe DAC PII

determine the performance of an insurer’s portfolio or the market as a whole. This is not a consideration that is exclusive to Ireland but there is increased volatility given: the relative scale of the local market, the disproportionate impact of larger claims and the risk of aggregation, where insurers may be insuring several parties on the same project. Historically, we have also been reliant upon UK insurers to provide capacity. Brexit and the removal of passporting rights presents some challenges, particularly in the short-term, and perhaps ultimately a further reduction in supply, but Ireland is also often seen as ‘a difficult place to do business’:

The uncertainty regarding limitation periods and the impact of legacy risk; The time and cost associated with defending claims; The potential for multi-party actions; The lessons of the last decade and the impact of the Civil Liability Act (the 1% rule). The ‘risk dumping’ mentality with risk being forced down the supply chain.

All of these are topics that we have covered previously that have the potential to feed into a negative perception at a time when we need to be working hard to attract and retain the support of insurers. On a positive note, the Building Control Amendment Regulations (BC(A)R) seem to have led to a general improvement in standards and have begun to address many of the issues that legislators in the UK, and other jurisdictions, are still wrestling with. It is also encouraging that there is an acknowledgement of the issues that exist within the PI market locally. The Office of Government Procurement (OGP) recently brought together representatives from the insurance and construction sectors to discuss the current challenges and we were pleased to be asked to provide the opening statement to advocate on behalf of our clients and construction professionals more generally. As a consequence of that engagement, OGP have committed to reviewing their approach in certain areas. ����� ���l From our own encounters with individual firms, engagement with the OGP and local professional bodies, we are aware that some contractors and consultants are now struggling to source PI cover. Many are reporting an inability to secure anything more than aggregate cover with wide-ranging restrictions whilst others are mentioning premium increases as high as 600%.

Against that backdrop, we knew that negotiations around the renewal of our Schemes were likely to be