Professional Indemnity insurance Scheme Renewal – 2021 - 22

volume to meet the claims burden and our Scheme is in a stronger position to weather the almost certain (but ultimately unknown) volume of claims likely to arise from particular areas of concern in the years ahead. The work we have undertaken means that whilst we’re certainly not out of the hard market yet, there are signs of better days ahead. Consequently, this year, whilst there will be a general aim for a modest increase in rates across the Scheme portfolio, the level of increase will be much less than last year. We also expect that we will start to see the Scheme underwriters having more ability to exercise underwriting judgement on individual cases. Coverage changes Whether the vision of those better days come to pass in 2022/23 and beyond turns almost completely on one issue: fire safety. When the Inquiry into the tragedy at Grenfell tower concludes next year, we are likely to then begin to understand the scale and potential impact of the problems created over the last several decades by how, as a nation, the design and construction of our built environment has been procured. Having regard to the potential for the severity of these risks to create a grave threat to the ability to continue to offer our Scheme specification, there will be a notable coverage change applicable to all Scheme renewals effective from your next individual policy renewal date. There will also be some policy amendments to reflect the ever-changing position on cyber liability exposures, led by moves from the industry regulator, who have called for clarification. Again, these will take effect from your next individual policy renewal date. We address each in turn below: Fire Safety We continue to engage with industry, regulators and Government about the continuing inability of the general PI insurance market to offer cover that adequately transfers ‘fire safety’ risks from consultants’ and contractors’ balance sheets to insurers. It has become our increasing belief that the improvement of the legal, commercial and operational conditions for those involved in designing and constructing the built environment is the only practical and sustainable long-term solution to this problem. On behalf of our clients, we have communicated that belief directly and unequivocally to Government, as well as those professional and trade associations that we advise. We recognise that our recommended changes to the ‘environmental conditions’ for