Assigned Risks Pool

Assigned Risks Pool

To ensure the availability of professional indemnity insurance (PII) RICS has a market facility, the Assigned Risks Pool (ARP). The ARP is collectively underwritten by all RICS Listed Insurers and managed on behalf of insurers and RICS by Miller Insurance Services LLP.

The ARP is open to all UK RICS regulated firms that are unable to obtain PII, which meets the minimum requirements of RICS. fFurther information on our PII requirements is available here.

RICS recognises that circumstances may arise where a firm may be unable to obtain PII and  unable to comply with the RICS PII requirements. Firms may be unable to obtain PII for a variety of reasons and the inability to obtain terms in the insurance market is not necessarily a reflection on your firm.

Where this happens, the ARP is a facility to which a firm may apply to enable it to comply, in some cases to a more limited degree, with the RICS insurance requirements while the firm takes action to rectify the issues that that have led to it being declined PII.

Failure to explore the ARP route in these circumstances will put the firm in breach of RICS Rules of Conduct and may lead to disciplinary action by RICS.

Are you eligible for the ARP?

All RICS UK regulated firms are eligible for terms from the ARP if they have been regulated by RICS for a minimum of 12 months. Entry into the ARP should only be considered after a firm has exhausted all other options.

A firm may apply to enter the ARP if it is currently trading and has been declined PII. A firm that is no longer trading or has been suspended by RICS Regulation at the time of application is not eligible to enter the ARP. Further detail on eligibility requirements can be found in the Rules and Procedure for Admission to the RICS Assigned Risks Pool document on this website page.

Entering the ARP

We would recommend any approach is made 14 days prior to the expiry date of your policy.

In order to apply for entry to the ARP, you or your broker will need to:

• Read the Rules and Procedure for Admission to the RICS Assigned Risk Pool
• Contact RICS Regulation on regulation@rics.org to discuss your situation
• You will then be required to submit the following to the ARP Manager:
• Provisional Application Form
• Proposal Form
• Confirmed claims experience for the past six years
• Details of any claim in excess of £25,000
• Expiry policy schedule (including details of broker commission)
• Details of the insurers approached at renewal and evidence of declinature from your existing insurer. We would normally expect 10 insurers to have been approached.

To discuss the ARP in more detail, please contact the RICS ARP Manager: arpmanager@miller-insurance.com.

What happens next?

On receipt of the application the ARP manager will assess the submission and liaise with insurers and the ARP Panel to provide terms. The ARP can provide terms up to a limit of indemnity of £1,000,000  for a 12 month period. Insurance beyond a period of 12 months is entirely at the discretion of the ARP Panel.

Your specific limit of indemnity will be based on your circumstances from the information provided in your application to enter the ARP. This could either be on an aggregate basis (which means that the limit of indemnity is the total amount that will be paid for multiple claims), or aggregate plus unlimited around the clock reinstatement basis (which means that the policy limit will reinstate for any unrelated claim after the erosion of the total limit purchased). This will depend on your situation when admitted to the ARP.

If the policy is written on an aggregate basis, and in the event that the aggregate limit is eroded, either by paid or outstanding claims, while the firm is still within the ARP, the ARP Panel may reinstate the aggregate limit at its sole discretion.

The insurance policy wording applicable to the ARP shall be the latest issued RICS Approved Minimum Policy Wording, except that:

• The limit of indemnity can be on an aggregate basis, as mentioned above.
• The ARP Panel may set additional terms and conditions of insurance that may result in less comprehensive insurance than the wording of the RICS Approved Minimum Wording.

In certain circumstances it may not be possible to initially provide terms on a 12 month basis and in such circumstances firms will be accepted into the ARP for a Provisional Period of Admission (no longer than 120 days, subject to any extension agreed by the ARP Panel) and the policy limit will be on an aggregate basis only (which means this is the total amount the policy will pay for all claims). During the provisional period a Business Review will be undertaken by RICS which will encompass an audit of work and review of risk and compliance. The Business Review will be at the firm’s expense and will be used by the ARP Panel in in its assessment of terms for the remaining period of admission or subsequent period within the ARP.

Run-off Cover

When your business ceases, you will still require run-off cover. This is insurance for claims made against a firm after it ceases to trade.

 In the UK and Ireland, RICS requires regulated firms to have in place six years of run-off cover for consumer claims (insurers will provide £1,000,000 any one claim and in the aggregate limit automatically in the RICS Approved Minimum Wording). For non-consumer claims we require regulated firms to have ‘adequate and appropriate’ run-off cover but would expect that run-off to be maintained for a minimum of six years from the cessation of the practice.

PII market practice is for the insurer who last covered your risk to provide annual run-off cover and they should be approached in the first instance.

Firms that are unable to obtain run-off from their incumbent insurer or on the open market will be able to apply for coverage from RICS’ Run-off Pool (ROP), which is a separate market facility that operates similarly to the ARP.  Like the ARP, the ROP is collectively underwritten by all RICS Listed Insurers and managed on behalf of insurers and the RICS by Miller Insurance Services LLP.

Are we eligible for the ROP?

All RICS UK regulated firms are eligible to apply for run-off terms from the ROP. Whilst the ROP will consider all applications it is not obliged to provide terms in all circumstances.

Entering the ROP

To discuss the ROP in more detail, please contact the RICS ARP Manager: arpmanager@miller-insurance.com.

What happens next?

On receipt of the application the ARP manager will assess the submission and if it meets the criteria of the ROP provide a quotation. The ROP can provide terms for a 12 month period for a policy limit of up to £1,000,000 aggregate (which means this is the total amount the policy will pay for all claims).

While your insurer will provide automatic run-off cover for consumer claims through RICS Approved Minimum Wording, you may wish to consider entering the ROP if for adequate and appropriate cover has not been insured for non-consumer claims. To discuss entering the ROP for commercial claims cover, please contact the ARP manager: arpmanager@miller-insurance.com.