The Royal Institute of Chartered Surveyors recently announced it is launching a consultation to investigate what can be done about the UK valuation sector’s professional indemnity insurance market, experts say.
Concerned about the current pricing and risk in the sector’s professional liability insurance, as it could be behind market dysfunction, RICS is examining the impact the cost and quantity of handling alleged negligence claims on not just the cost of business liability insurance for firms on the receiving end of claims but for the entire market. Fears exist within the market that these structural problems could result in limitations to competition, reductions to the amount of protection supplied to clients, or even a complete failure of the market itself.
In an effort to avert these disasters, RICS has decided to commission key members of the insurance industry and a working group of experts on valuation, which includes Sir Bryan Carsberg as one of its members. With the group’s report recently being launched, RICS has put out the call for member and stakeholder input in order to give the final report added shape.
Opening on December 1, the three month consultation will be finalised early in 2012, with its final proposals being put to the insurance sector, lenders, and the government for review. RICS has made several key recommendations in the report, such as having it work with insurers in order to determine whether the current claim system could be replaced with an alternative one, and how this would affect not just valuers and the market but the wider public as well.