Professional Indemnity insurance Scheme Renewal – 2021 - 22

Insurer changes First, we are taking the opportunity to restructure the insurer panels that support our various facilities. These changes are evolutionary rather than revolutionary but will bring with them some change to our lead insurer markets. From 1st November, we are delighted to report that AXIS Specialty Europe SE (‘AXIS’) will join Arch Insurance to take on the role of a lead underwriter for significant proportions of our UK and Irish construction facilities. AXIS have been a co-insurer on our Scheme facilities for 5-years and our personal relationships with their specialist UK PI underwriting team extends back over 20-years. They bring with them a rich depth of underwriting resource, backed up by a strong and growing appetite for UK construction risks and an enviable A+ rated financial position. As part of the AXIS Capital Holdings group of businesses, they underwrite some US$1.4bn of professional lines business, with US$26bn of assets globally. We view this change as entirely positive and look forward to being able to continue to provide our clients with the reassurance of the Scheme specification many have known for several decades. Whilst the identity of the lead insurer may change, the underwriting, claims and risk management services that we provide will not. Our commitment to ensuring that your PI policy provides the broadest sustainable level of cover, backed up by our unique claims handling specification, continues as before. Our relationship with RSA will continue in some form albeit that they will be relinquishing a lead insurer position. The basis of that relationship will become clearer as the RSA Group decides on its key areas of focus following the completion of the sale to its Danish and Canadian buyers. Predictions for the cost of cover Inevitably, the turmoil many of you will have heard about in the wider PI market has also impacted our Scheme and together as we have worked through the last 12 months, we have faced the challenge of an insurer led drive for increased premium. We recognise that no increase in cost was welcome, particularly at a time where we faced unprecedented economic uncertainty whilst managing the consequences of a global pandemic. But such an increase was a necessary step to continue to attract sufficient quality insurance capital and has ensured that we continue to meet the promises made as part of our long-term offering. As a collective, our Scheme clients have all delivered on the need to increase the premium