PROFESSIONAL INDEMNITY INSURANCE BROKING AND …€¦ · We take time to understand the sector you...
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PROFESSIONAL INDEMNITY INSURANCE BROKING AND ADVISORY SERVICES FOR SURVEYING FIRMS
Transcript of PROFESSIONAL INDEMNITY INSURANCE BROKING AND …€¦ · We take time to understand the sector you...
PROFESSIONAL INDEMNITY INSURANCE
BROKING AND ADVISORY SERVICES
FOR SURVEYING FIRMS
OUR KNOWLEDGE: YOUR ADVANTAGE
CONTENTS
• Professional Indemnity (PI) insurance market update
• Efficient insurance buying
• Why choose Howden for PI?
• Howden claims handling
• Testimonials
• About Howden Broking Group
• Contact us
1
OUR KNOWLEDGE: YOUR ADVANTAGE
• It’s still all about valuations for lending
• Significant decline in new notifications BUT
• Insurers still settling claims arising from work undertaken in 2006-2009
• Insurer appetite for firms that have done valuations for lending remains
limited
• PI rate for valuations for lending typically at between 5% and 15% of income
(occasionally more), depending on claims history
• Long standing insurers to the sector pushing hard for rate rises (or declining
to renew) but aggressive new insurers entering the market
• For all other surveying work, PI insurance is priced extremely competitively
2
PII MARKET UPDATE
€32m
vs
£43m
25p for
every
£1 of
income
£70m vs
£500m+
£40k +
£70k
Premium
income to
insurers fallen
by 30% since
2005
Settlement awarded
in the Titan vs.
Colliers claim vs.
total primary
premium income
generated by
insurers from RICS
regulated firms
PII rate for a
highly
distressed
surveying firm
Settlement
amount + legal
fees in a resi.
S&V claim
Estimated total premium
income generated by
RICS regulated firms vs
Estimated total
settlements in resi S&V
cases
OUR KNOWLEDGE: YOUR ADVANTAGE
PI MARKET UPDATE
Insurers’ perceptions of different surveying disciplines
High risk
Low risk
Source: Howden internal data as at February 2015
OUR KNOWLEDGE: YOUR ADVANTAGE
PI MARKET UPDATE
• Recent case law and important events
– Leave to appeal granted in Titan Europe 2006-3 plc v Colliers International UK plc (in
liquidation)
– Duty of care when preparing a valuation report Freemont (Denbigh) Ltd v Knight
Frank LLP (2014)
– Effective use of Liability Caps and evidence of growing acceptance by client
– Effective use of Net Contribution Clauses West v Finlay 2014
– Personal liability - Matthews v Ashdown Lyons and Maldoom
– Changes to CDM regulations
– Dr Oonagh McDonald’s report, ‘Balancing Risk and Reward’ followed by the work of
the RICS Cross sectors group. Will recommendations result in change?
• Evidence of strong support for increased use of ADR in residential valuation claims under
£100,000
OUR KNOWLEDGE: YOUR ADVANTAGE
PI MARKET UPDATE
• Areas of concern to insurers
– Return to the practices of the boom years – too many instructions in one day for
too little money
– Insufficient due diligence on new clients, particularly new lenders
– Impact of Assisted First Time Buyer and other Government Incentives on ability
to accurately assess property value
– Valuing Homes of Multiple Occupancy
– Perceived higher risk borrowing
• Buy to Let valuations
• Bridging loans
• Second charge lending
OUR KNOWLEDGE: YOUR ADVANTAGE
PI MARKET UPDATE
• Areas of concern to insurers continued……
– Claims arising from use of new technologies, particularly relating to ‘Green
Construction’
– Financial stability of, and insurance coverage for sub-contractors
– Changing regulation (CDM regulations 2015)
OUR KNOWLEDGE: YOUR ADVANTAGE
EFFICIENT INSURANCE BUYING
• Start the process early – at least six weeks ahead of renewal
• Your proposal form represents your business; does it represent it well and is it
accurate?
• Ensure the person in charge of buying insurance understands how to run the
process
• Report your claims history accurately and fully and demonstrate the steps you
have taken to prevent re-occurrence
• Does your broker understand what you do and how you do it?
• If your premium is over £20,000 don’t ask more than three brokers to quote
• Concentrate on improving risk management and ensure that risk management
policies are reflected in your proposal form
• Ensure your broker and insurer have a strong claims team – it’s not just about
premium
• Ensure you understand what your policy covers
OUR KNOWLEDGE: YOUR ADVANTAGE
WHY CHOOSE HOWDEN FOR PI?
1
WHAT MAKES US DIFFERENT AND WHAT DOES IT MEAN FOR YOUR BUSINESS?
KNOWLEDGE We understand what you do and what insurers want. You will get appropriate cover, from the right insurer, at the
right price.
SECTOR
SPECIALISATION
We take time to understand the sector you operate in. We understand the risks your business is exposed to. We
know what you need from your insurance and what your clients expect.
CLAIMS SERVICE
We have settled over £500m worth of claims on behalf of clients in the last four years. You have an experienced,
knowledgeable in-house Claim’s Handling team with over 30 specialists on your side to provide advice, get claims
settled and act as your advocate.
EXPERTISE
We have over 100 PII specialists. We know what we’re doing. Every member of our team sits within 20 metres of
someone with over 20 years insurance industry experience. If you’ve got a problem we will have several people
who can provide a solution and we will work collaboratively with you to deliver the best outcome.
STRENGTH Our size and reputation helps us consistently negotiate better premiums with insurers.
SIZE Large enough to make a difference with insurers but still small enough to offer great service based on strong
relationships.
INTEGRITY We tell it how it is, providing honest and informed advice and guidance. If we say we are going to do something or
we commit to delivering a certain premium, we will do it.
KEEPING YOU
INFORMED
We ensure you have access to up-to-date information on factors that can impact premium and risk management.
We give you the opportunity to benefit from the lessons learnt in other professional sectors.
OUR KNOWLEDGE: YOUR ADVANTAGE
HOWDEN PROFESSIONAL INDEMNITY
1
Place £165m PII premium (gross) per annum
Gross written premium placed by Howden by profession (2014)
26%
19%
5%
26%
7%
2%
8%
7%
Financial Advisers
Surveyors
Insurance Brokers
Solicitors
Engineers
Architects
Miscellaneous & other
Accountants
OUR KNOWLEDGE: YOUR ADVANTAGE
WHY CHOOSE HOWDEN FOR PI?
• Exclusive PI product for firms paying over £10,000 premium. Offering competitive
premiums and excesses and uniquely underwritten by 5 RICS listed insurers. Only
available to Howden clients
• RICS only preferred UK PI broker
• Represent over £20m premium per annum from the property and construction sector
• Expertise across all areas of the property and construction industry from valuers
through to project managers, architects and civil engineers
• Recognised for our ability to find insurance for firms operating in high risk areas
and/or with poor claims histories
• Clients range from Sole Practitioners to some of the world’s largest property
consultancies
• Committed to developing our service offering and proactively helping clients manage
risk through the regular e-bulletins and events
• Play a leading role in driving the delivery of solutions to the challenges posed by PI
across the surveying industry
OUR KNOWLEDGE: YOUR ADVANTAGE
HOWDEN CLAIMS HANDLING
• How we work with you
– The largest PII claims team in the London market with over 30 members of staff
– In excess of £70m of claims settled on behalf of surveyors in the past 5 years
– Our strength and expertise reduces the time you and your colleagues have to
spend handling claims and reduces the likelihood of insurers repudiating claims
– Team led by Kevin Bailey and Rob Turner. Both have over 25 years experience
of handling PI claims and have been involved in managing some of the largest
claims arising from the property and construction sector.
– Strong, long term relationships with claims handlers at major insurers and a
belief in negotiating matters face to face
– The Howden claims team is based in the same office as your account handlers
and broker ensuring we provide a comprehensive, joined up service
“Three things distinguish the Howden Professional Indemnity claims handling team
from the competition; firstly their knowledge – these are genuine specialists with a
complete understanding of the challenges facing their clients and the environment in
which they operate. Secondly their skill – in dealing with difficult situations whether
it be in relation to coverage or otherwise, they know their business and the market
respects them for that. The third is perhaps the most significant - they care about
protecting their insureds’ interests and getting the best results out of a claim. How a
claim is handled is the best form of advertisement for a broker and that is why so
many businesses have remained with them year on year”
Professional Negligence Partner
UK Top 30 Law Firm
OUR KNOWLEDGE: YOUR ADVANTAGE
TESTIMONIALS
Can do is no match for have done :
“Thank you very much for handling our
Professional Indemnity insurance renewal again
this year. I was delighted with the result,
obtaining for us a sector leading two year deal,
and at a price that compares more than
favorably with market rates. I am sure that
market conditions will present us with a
challenge at next renewal and am grateful to you
for your advice in this regard. I would also like
you to convey our thanks to your claims
handling team, who continue to deal extremely
effectively with any matters that arise. We are
appreciative of the continuity of underwriting and
the sustained high levels of service and support
that Howden provide for us.”
LLP Secretary, top 20 UK Property
Consultants
“Having recently established my own surveying
practice I have found Howden to be extremely
helpful and approachable throughout the whole
process. In addition, the competitive premium
level is vital for a new company”
Sole practitioner surveyor
“Howden have arranged our
professional indemnity insurance
since 2006 and we have always
been impressed with their
knowledge of our industry, service
and premium. This has been
further endorsed by their
appointment as the RICS preferred
UK PI Broker. We therefore have
no hesitation in recommending
them to other firms”
Chairman
Independent Estate Agents
“Our relationship stretches back
almost 10 years which is testament to
the continuing high level of service
they provide us with. I would have no
hesitation in recommending Howden
as exemplary insurance providers.”
Partner & Chief Executive, UK top
20 Architectural practice
“From the outset we were impressed by the speed
of Howden’s response and the knowledge they
have of our sector. Throughout the process they
displayed a confident and constructive approach
and the meetings they set up with potential insurers
enabled us to fully explain our risk management
procedures. The client service team were
extremely helpful and we have no doubt that they
will be fully supportive if we need their assistance.
Howden eased us through what has in the past
sometimes been an anxious period and the
premium reduction was an excellent outcome..”
Director, Business Surveyors and Valuers
OUR KNOWLEDGE: YOUR ADVANTAGE
ABOUT HOWDEN BROKING GROUP
1,400+
employees
73
offices
30
countries
£143m
revenue
Howden Broking Group Revenue (to 30th September 2014)
0
40
80
120
160
2007 2008 2009 2010 2011 2012 2013 2014
OUR KNOWLEDGE: YOUR ADVANTAGE
UK
FINLAND SWEDEN
NORWAY
POLAND
GERMANY
NETHERLANDS
SPAIN TURKEY
ISRAEL
UAE
BERMUDA
USA
CANADA
COLUMBIA*
ECUADOR*
PERU*
CHILE
URUGUAY
BRAZIL
INDIA
HONG KONG MACAU
KOREA
SINGAPORE
TAIWAN
THAILAND
PHILIPPINES
MALAYSIA
INDONESIA
GUERNSEY JERSEY
5
Gross written premium by country
23% NORTH
AMERICA
20% UK
12% NORDICS
4% EUROPE
11% MIDDLE EAST & AFRICA
8% CENTRAL
AND
SOUTH
AMERICA
22% ASIA
PACIFIC
ABOUT HOWDEN BROKING GROUP
OUR KNOWLEDGE: YOUR ADVANTAGE
ABOUT HOWDEN BROKING GROUP
In addition to PI we can arrange the following forms of insurance
PEOPLE ASSETS LIABIILTIES
Personal Accident Property Employer’s Liability
Expatriate Medical Terrorism Public & Product Liability
Business Travel Business Interruption Environmental Liability
Kidnap, Ransom and Extortion Construction Directors and Officers Liability
Employee Health & Benefits Plant and Equipment Professional Indemnity
War & Political Risks Machinery/Electronic Breakdown Cyber Liability
Crime Intellectual Property Protection
Fleet Crime
Title & transactional liability
Insurance
OUR KNOWLEDGE: YOUR ADVANTAGE
Our parent: Hyperion Insurance Group
ABOUT HOWDEN BROKING GROUP
“Hyperion is one of the most exciting growth companies we have come across which has
built a global business by focusing on the emerging needs of customers for specialist
insurance products.”
John Bernstein
Managing Director, London
General Atlantic
“The standout performer of this year is the acquisitive Hyperion Insurance Group, which
enjoyed a 28.1% uplift in brokerage. This is a business that has a great vibe about it…”
“Second last year and first this year. A double that is hard to achieve as it shows
sustained outstanding progress……. The dynamism of the business means that it can
attract some of the best talent.”
IMAS commentary on
Hyperion Insurance Group
Insurance Times Top 50 Insurance Brokers report, 2014
OUR KNOWLEDGE: YOUR ADVANTAGE
HOWDEN / RKH
• Merger of two of the UK’s leading insurance brokers
• Provide bespoke insurance solutions for a broad range of clients:
– Professions and financial institutions
– Businesses – large and small, local and global
– Affinity groups including trade associations
– Private clients including rural businesses
• Full integration by the end of 2015
• 1,500 employees across 30 countries
• 85 offices worldwide
71 FENCHURCH STREET
LONDON
EC3M 4BS
WWW.HOWDENGROUP.COM/SURVEYORS
CONTACT US
GREG HARRISON
T: 020 7133 1505
PETER LONDON
T: 020 7133 1449
MATT FARMAN
T: 020 7133 1565
Howden Insurance Brokers is a subsidiary of Howden Broking Group Limited, part of
the Hyperion Insurance Group. Howden Insurance Brokers Limited is authorised and
regulated by the Financial Conduct Authority: Firm reference number 312584.
Registered in England and Wales under company registration number 203500.
Registered office: 16 Eastcheap, London EC3M 1BD.
This document or any portion of the information it contains may not be copied or reproduced
in any form without the permission of Howden Insurance Brokers Limited, except that clients of
Howden Insurance Brokers Limited need not obtain such permission when using this report either
for their internal purposes or to give to their clients.
The information contained herein is based on sources we believe reliable and should be understood to
be general risk management and insurance information only. Howden makes no representations or
warranties, expressed or implied, concerning the accuracy of information contained herein. The
information is not intended to be taken as advice with respect to any individual situation and
cannot be relied upon as such.
Copyright © March 2015 Howden Broking Group
