We have recently been aware that unrated insurers have entered the PII market for RICS firms.
Whilst RICS recognise the difficulties in obtaining professional indemnity insurance at the current time, the RICS requires that regulated firms must obtain their PII from a listed insurer that is rated by either AM Best, with a credit rating of at least B+, or Standard & Poor, with a credit rating of at least category BBB.
RICS do not believe that insurance provided by unrated insurers is adequate and appropriate, as they have not been rated in terms of their financial strength by an international ratings agency and present a higher risk of failure, potentially leaving regulated firms uninsured and exposed to financial loss.
RICS will not accept dispensations requests for insurance provided by unrated insurers.
We have a list of insurers that's renewed annually. Each year we invite insurers to apply to be a listed insurer and, provided they meet with our criteria as detailed below, they'll be accepted.
"Listed Insurer" means an insurer who:
(a) is authorised by the Department of Trade and Industry in the United Kingdom or the Department for Enterprise and Employment in the Republic of Ireland to underwrite general liability insurance business or is in some other way recognised by the Department of Trade and Industry or the Department for Enterprise and Employment to provide professional indemnity insurance business in the United Kingdom or the Republic of Ireland respectively
is in some other way recognised by the Department of Trade and Industry or the Department for Enterprise and Employment to provide professional indemnity insurance business in the United Kingdom or the Republic of Ireland respectively
is an insurance company the head office of which is in a member state of the European Union other than the United Kingdom and which is entitled to carry on insurance business as a branch in the United Kingdom and the Republic of Ireland on the freedom to provide services basis
(b) is rated within AM Best at least B+ or Standard & Poors at least Category BBB or have specific written approval from RICS to waive the requirement; and
(c) agrees to write a policy that is no less comprehensive than the form of the RICS policy wording [subject to any derogations for firms within the Assigned Risks Pool] in force at the time when the policy of insurance is taken out; and
d) agrees to underwrite, for the period of the contract, the ARP lineslip contract terms as set out in this Prospectus for Listed Insurers and to be bound by the terms thereof for such period as may be agreed between the RICS and the Listed Insurer; and
(e) is listed by the RICS for the purposes of the Assigned Risks Pool.
RICS Listed Insurers UK
We do not have a suggested list of brokers available. However, Howden UK Group Limited are RICS' 'preferred' UK Broker and will be able to assist members in exploring their PI options. Further options are available on the Low Fee Earners section of the UK insurance area of the website. If you require further assistance please call the RICS Regulation helpline on 020 7695 1670.
The Association of Insurers and Risk Managers has developed a set of questions for the buyers of insurance to use as a checklist with their broker. This is not an exhaustive list, nor will it be appropriate for all organisations, however it is a useful starting point.
The lists below details those insurers who are listed to underwrite professional indemnity insurance policies of RICS member firms in the United Kingdom and the Republic of Ireland jursidictions as from 1 May, 2020.