TSA Members Professional I ndemnity I nsurance Scheme TSA Members - - PowerPoint PPT Presentation

Lockton Companies International Limited. Authorised and regulated by the Financial Services Authority. A Lloyd’s Broker.

TSA Members Professional I ndemnity I nsurance Scheme

TSA Members Discussion Group 6th Nov 2008

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Contents

• TSA Members scheme overview
• The future of the TSA Members PI scheme & raising the PI minimum

requirement to £500k AOC

• Claims & Risk Management

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5 10 15 20 25 30 35 2004 2005 2006 2007 2008 Fee (£ Mil)

Combined TSA Members Fee I ncome

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Combined TSA Scheme Rates

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9 1 2004 2005 2006 2007 2008 Rates

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TSA Members Scheme Overview

• Lockton have managed the TSA Member Scheme for over a decade
• Underwritten by Royal & Sun Alliance
• Exclusive to the TSA Members through Lockton
• Policy wording written by Lockton for the members

Costs in addition Policies on an Any One Claim Basis

• Proposed minimum £500,000 any one claim
• Policy is designed to go beyond the basic RICS minimum required levels
• f PI cover

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The Future of the PI Market

• Significant price increases for Surveyors, Architects and any profession

involved in the construction industry

• PI Policies becoming more restrictive as the market hardens
• Construction industry continues to decline
• Deepening global financial crisis damaging insurers asset reserves
• Safety in numbers – TSA Scheme will continue to offer peace of mind

and added protection from a hardening market

Lockton Companies International Limited. Authorised and regulated by the Financial Services Authority. A Lloyd’s Broker.

Transportation Presentation Claims & Risk Management

7 No terms of engagement Inadequate client’s brief Not understanding client’s needs Silo mentality;

• ffice rivalry

Client’s expectations not met Insufficient peer reviewing Corner-cutting due to workload Inter-departmental stress Arrogance – failure to check detail Operating outside core expertise Careless record keeping Lack of supervision

* Unskilled client management*

Inadequate report/letter writing Poor interpersonal communication Miscalculation Missed time limits

Common Causes of Claims

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Unskilled Client Management

• “Look after your clients, and you will be managing risk; fail to

manage risk, and your clients will suffer”

• Happy clients are less likely to bring claims even if something goes

wrong

• Unhappy clients will look for a problem

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Taking On New Clients

• Pause before pressing ‘go’!
• Is this a client you want to act for?
• Can you act without any conflict?
• Have you got the skill and knowledge to do what they want, and the

resources to do it when they want it?

• Think carefully about taking on a client if you can’t answer ‘yes’

to these questions

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Contracts or Letters of Engagement

2 3 4 5 6 10 9 8 7

All forms

• f

Correspondence All Computer Records

• f

E-mails & Data File Notes, plans & schedules Conversations in person or by phone Site Notes Photos & Sketches Minutes & Attendance Notes Daybooks & Diaries Hot & Cold Reviews / Internal Audit Operating procedures

The Paper Trail of Evidence

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Conclusion

• PI Market set to harden
• Increasing litigious environment due to the economic downturn
• The consequential losses of facing a claim will usually surpass the value
• f the error
• TSA are raising the minimum PI levels to £500k
• Looking to introduce a TSA Members specific D & O Scheme

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Key Points

• Safety in numbers – The scheme offers protection simply not

available on the open market

• Look after your clients and you will be managing risk

Lockton Companies International Limited. Authorised and regulated by the Financial Services Authority. A Lloyd’s Broker.

The TSA Scheme providers Contact: Jonathan Bogan 0117 906 5025 jonathan.bogan@uk.lockton.com