RAAC - PII implications

It is unlikely that at present our Scheme Insurers would regard this as a matter which

requires immediate notification to them. Consequently, whilst in the course of your

usual renewal process information requirements around this issue are likely to arise,

there is no need at the moment to get in touch. If that position changes, we will

communicate the requirements at that time.

That said, insurers would expect that insureds only undertake work which they are

competent to perform. Whilst we are not in a position to say who is or is not

competent to undertake the survey and remedial schemes that addressing RAAC will

need, the Government view not only professional qualifications and credentials as

being ‘essential’ but also experience. The following Government publication makes

that position clear: Reinforced Autoclaved Aerated Concrete Identification Guidance.

Government expects that professionals undertaking a survey of a suspect building

are able to show, amongst other things, experience of working with RAAC.

• Is there any insurer guidance on undertaking RAAC surveys?

PI insurers will rarely issue detailed technical guidance on matters which are

technical issues of professional judgement. There is considerable advice and

guidance in the public domain from professional bodies and insurers would expect

professionals to be aware of that advice and to follow best practice.

• Are the PI insurers worried about the exposure?

At present, we’re not aware of any insurer adopting a position which suggests they

have significant concerns although we are aware of conversations beginning to take

place.

Although there is potential for there to be some legacy risk here, particularly if the

extended limitation periods under the Defective Premises Act (‘DPA’) could be used,

that is likely to be the exception rather than the rule. The DPA applies to dwellings

and, to date, there appears to be no significant use of RAAC in a residential or

mixed-use environment where the DPA might apply. This would suggest that the

new potential causes of action under the Building Safety Act, in relation to the new