Lawcovernotes May 2013

Lvl 12, 580 George St, Sydney NSW 2000 Australia DX 11527 Sydney Downtown Telephone (02) 9264 8855 | Facsimile (02) 9264 8844 | Welcome LawCover Pty Ltd | ABN 48 003 326 618 LawCover Insurance Pty Ltd | ABN 15 095 082 509 In each issue of LawCoverNotes we will aim to provide information of interest and importance to both LawCover and the profession, and/or any other matters which we feel might be topical. Each issue will include several ‘Cautionary Notes’ which are always of interest and we will also use LawCoverNotes to remind you that we offer a range of risk management and claims prevention programs that can reduce the risk of claims against you. As CEO of LawCover this publication also provides me with an opportunity to communicate directly with our insured solicitors. Since my appointment as CEO in September 2012 I have also had the pleasure of meeting with many of you through various meetings and events and I look forward to continuing that as the year progresses. I believe the evidence is overwhelming that the indemnity needs of professionals are best managed through a profession owned, licensed and regulated insurance company. In the case of LawCover, aligning the interests and challenges of the legal profession with strong and prudential financial management provides both understanding and security, although there is a cost associated with such a structure. Like most things in life, it is striking the balance between cost and benefit that proves the challenge. LawCover has a unique place in Australia as the only profession owned licensed insurer to protect the legal profession. We have no shareholders demanding returns or dividends and that means we can focus wholly on you, our insured solicitors. For nearly a decade prior to my appointment as CEO, LawCover has been on a path to attain capital strength sufficient to provide enduring protection for its insured solicitors irrespective of external pressures. LawCover’s current financial strength and stability is testament to the attainment of that goal. However I am also aware that there are challenges. In my discussions with insured solicitors, there has been an expression of concern surrounding the issue of premiums, loadings and excesses. While concern over costs is not unfamiliar territory in any insurance/indemnity situation, I have made it one of my key objectives to assess how we can work to put downward pressure on both the cost and frequency of claims and as a consequence, provide predictability and affordability to the premiums you pay. This includes working closely with the profession in reducing the incidence of claims - a key focus for LawCover in the coming financial year. My focus is clear - it is to ensure that the strength and stability of LawCover is such that you are assured we will provide enduring insurance protection both today and into the future. In doing so it provides an opportunity to work with the profession to reduce the incidence of claims through our risk management and claims prevention strategies. Michael Halliday Chief Executive Officer ...Welcome to the first issue of LawCoverNotes - LawCover’s new communication which will be published at least three times a year. Notes MAY 2013 EDI T ION 1