Lawcovernotes March 2016

InsuranceRenewal Mid-April you will be able to access Lawcover’s Online Services to renew your Professional Indemnity Insurance (PII) for 2016/17. We have continued to refine the renewal process tomake it easier for you to complete your renewal for both the primary $2m cover and optional Top Up insurance, if you wish to increase your limit of cover to suit your practise. Our experienced Insurance Services teamare always available to assist you before or during the process. We look forward to being of service to you. InsurancePremiums I had the pleasure of welcoming delegates to the 2016 Lawcover One Day Claims Prevention Seminar this month. During my opening address, I recalled that I hadmade a commitment to delegates at the 2012 Seminar (my first) that I would seek to address the number one issue I faced when talking to insured solicitors – the cost of professional indemnity insurance premiums. I was pleased to report to the seminar delegates that the 2015/16 premium pool (the collective amount of all premiums) represented a reduction of some 12% from the 2014/15 premium pool, but more importantly was the same amount as the first premiumpool set by Lawcover Insurance in 2004. In a time of increasing insurance costs and premiums all around us, it is satisfying to note that Lawcover’s premiums have been reducing each year since 2013 and that the premium pool for 2016/17 will be the same as 2015/16. That means that on a like-for- like basis and for most law practices, the insurance premium for next year will be very similar to last year. (Note that this is dependent onmovements in your Gross Fee Income and any claims experienced by your practice over the period). One of the more interesting statistics arises when comparing the premium pools for 2004/05 and 2015/16. In that period the number of solicitors in Lawcover insured law practices has increased by 68%, which represents a 40% reduction in the insurance cost on a per solicitor basis. A number of factors have contributed to this, including tort law reform, operational initiatives such as adopting modern, effective insurance techniques and also optimising capital management strategies. Importantly we have also increased our focus on claims prevention strategies and risk education for solicitors. These are the things we do to meet our obligations to you. However, there is another significant factor and that is the stable number of claims arising from alleged negligence over a period of considerable growth in the number of practising solicitors. I believe that this ‘counter-intuitive’ insurance trend is reflective of a professional, competent and risk aware legal profession that is delivering outstanding service to its clients. Lawcover remains a strong, well capitalised profession owned insurance company which is focused on broad and sustainable PII cover, excellent professional services and affordable premiums. This includes (when circumstances allow) the provision of policyholder rebates to eligible insured law practices. It is a privilege to be CEOof an insurer whose focus is on its insureds, and whose insureds’ focus is on professionalism in legal practice. Michael Halliday Chief Executive Officer Lvl 13, 383 Kent St, Sydney NSW 2000 Australia DX 13013 Sydney Market Street Telephone (02) 9264 8855 | Facsimile (02) 9264 8844 | Lawcover Pty Ltd | ABN 48 003 326 618 Lawcover Insurance Pty Ltd | ABN 15 095 082 509 PDF VERSION Welcome to our March 2016 edition of Lawcovernotes. March 2016 edition 9