Lynn Richards-Cole, associate director at Perkins Slade, has taken on the role of chairman of the Insurance Broking Faculty at the Chartered Insurance Institute (CII). Lynn takes over from Mark Radburn, CEO International Networks, Willis Limited and will be the first female chairman of the faculty.

Mark served as chairman of the Insurance Broking Faculty for the past two years and during this time launched the market-leading “Delivering World Class Service” research report with Ernst & Young in April 2009. Mark also helped to establish Chartered Status as the benchmark for professionalism within the broking industry, highlighting the significant benefits to both firms and individuals.

Commenting on her new role, Lynn stated, “I am very happy to be taking up the role of chairman after the valuable work that Mark has done. I am a great advocate of Chartered Status and have seen the benefit it has brought to my own firm. Working with my colleagues within the faculty, I aim to encourage more firms and individuals to achieve Chartered Status and so firmly establish the reputation of professionalism that is growing within our sector.”

Gillian Donegan, faculties manager at the CII, said, “Mark’s leadership has provided the faculty with the vision to improve further the standards and professionalism of brokers working in the industry today. Mark has shown great commitment and success in his year as chairman and we are delighted to see him stay on as a member of the board.

“Lynn took on the role of chairman from 1st April and we look forward to supporting her in further enhancing the standing and expertise of the broking industry.”

ENDS

Notes to Editors:

The CII

The CII is the world’s leading professional organisation for insurance and financial services. Its 95,000 members are committed to maintaining the highest standards of technical competence and ethical conduct.

A robust framework of learning and development solutions enables the CII to support corporate partners and individuals across the industry. It ensures that all members comply with minimum standards and inspires many more to achieve advanced levels of technical and professional competence.

About the CII Faculties

The CII Faculties offer members a simple way to stay up to date and well briefed on the issues of the day affecting their particular area of business. Each faculty is advised by a board of representatives selected from senior figures within the industry. The boards guide and inform the choice of issues and topics to be considered and identify subjects for further research or debate. This approach ensures the faculties present a balanced view on any topic and provide insights and thought-leadership to improve the level of professional knowledge in each area. Membership of one faculty is free to CII members.

Membership of the Insurance Broking Faculty membership stands at around 8,500 members. Further details can be found at www.cii.co.uk/broking

Two key findings, one structural and another economic came from the conference.  The latter was the realisation that Birmingham’s future success needed a new economic driver – ‘business and professional services’. It was this that led the late Roger Dickens along with Peter Carter, Bob Gilbert, Ian Hunter, John James, David Maxwell, Robert Moore, Richard Samuda, Ian Wade and Peter Williams to establish City 2000 on the 27th April 1990 after a year of debate and soundings around the city.

Despite starting in a recession the organisation immediately captured the imagination of the BPS community and has gone from strength to strength over the ensuing two decades.

1999 saw the organisation rename itself Birmingham Forward to more accurately reflect the role we felt our members play in the continued development of the city.

Birmingham Forwad celebrated their 20th Anniversary with a very special keynote lunch, where they welcomed Sir David Bell who is currently non executive director of the Economist, chairman of Sadlers Wells, the University of Roehampton, Crisis, Common Purpose, the London Transport Museum, the Media Standards Trust, the Transformation Trust ,  the Institute of War and Peace Reporting and the Walpole Committee. In his speech Sir David shared his thoughts on:

• What he was doing 20 years ago
• Potential challenges we may face over the next 20 years
• What he wishes he’d known 20 years ago
• what BPS are doing right and what needs improving
• His involvement with Crisis and the importance of looking at a city’s reputation holistically.

188 businessmen and women attended, click here to see a photo of guests at the Perkins Slade table. From left to right back row - David Slade (Perkins Slade), Nick tamblyn (Perkins Slade), Mark Anslow (BDO), Ian Flavell (Metalrax). From left to right middle row - Ann Benzimra (Hill Hofstetter), Sally Del Prinicipe (Perkins Slade), John Smith (Caparo). From left to right front row - Tim Foster (Hill Hofstetter), Lynn Richards-Cole (Perkins Slade).

Financial losses resulting from floods can be vast. In the summer of 2007, torrential rain and flooding caused widespread destruction resulting in 165,000 claims totalling £3 billion. The Pitt Review described it as the largest single claims event in UK history and the Association of British Insurers (ABI) recently stated that the cost of flood and windstorm damage will continue to increase as global temperatures rise.

Over 5 million people in England and Wales live and work in properties currently at risk of flooding from rivers or the sea. This News Alert provides practical advice to help those at risk prepare for a flood, minimise losses and deal with the aftermath.

Before a flood

1. Check your insurance

Homeowners should check their home insurance policy to ensure cover includes flood damage. It is also advisable to review the key features of the policy including any excesses you will be expected to pay in the event of a claim.

If you're approaching renewal, or if you're looking for a home insurance provider and you live in an area at risk of flooding, you can be reassured that cover is still available.

The statement of principles, agreed between insurers and the government, outlines the terms under which cover will be available in areas prone to flooding. The Association of British Insurers (ABI) defines the agreement as a commitment by UK insurers to:

• make flood insurance for domestic properties and small businesses available as a feature of standard household and small business policies if the flood risk is not significant (this is generally defined as no worse than a 1.3% or 1 in 75 annual probability of flooding).
• offer flood cover to existing domestic property and small business customers at significant flood risk providing the Environment Agency has announced plans and notified the ABI of its intention to reduce the risk for those customers below significant within five years. The commitment to offer cover will extend to the new owner of any applicable property subject to satisfactory information about the new owner.

It is important to note that:

• the premiums charged and policy terms will reflect the level of risk presented and are not affected by this commitment
• this commitment does not apply to any new property built after 1 January 2009: the ABI encourages developers and customers purchasing a property in a new development to ensure that it is insurable for flooding.

The agreement will remain in place until 30th June 2013.

If you’re currently looking for a home insurance provider, and your property is located in an area prone to flooding, check the insurer’s approach to the following before making a choice:

• replacing damaged goods
• covering alternative accommodation costs
• flexibility in choice of tradesmen/suppliers
• available optional covers 
• limits and exclusions
• excesses
• specified single articles amount.

It is also vital for companies to regularly review insurance cover. The Pitt Review found that under-insurance was a major problem in the floods of 2007, particularly for businesses.

Most organisations will have business interruption cover but a full review of the gross sum insured and the indemnity period should be frequently undertaken. This isn't just a question of insuring flood as a peril, denial of access and loss of attraction may have an equally disastrous impact on business.

If the nature or organisation of your business is complex, you may need expert advice from a specialist surveyor to review your requirements and help calculate the gross profit sum insured.

2. Understand flood warning codes

The Environment agency uses four codes:

• Severe Flood Warning – Severe flooding is expected, there is extreme danger to life and property. Act now.
• Flood Warning – Flooding of homes and businesses is expected. Act now.
• Flood Watch – Flooding of low lying areas is expected. Be prepared.
• All Clear – Flood watches or warnings are no longer in force in this area.

Warnings are published on the Environment Agency’s web site at www.environment-agency.gov.uk/ and in the media.

Homeowners and businesses in high risk areas also have access to Floodline Warnings Direct, a free service that provides flood warnings by telephone, mobile, email, SMS text message and fax.

Simple advice on what to do, before, during and after a flood is also available from Floodline on 0845 988 1188 and Typetalk 0845 602 6340.

3. Plan and prepare

For homeowners, the Environment Agency provides a template flood plan. Use the link at the end of this article to download the plan from their web site.

Your flood plan should include:

• your insurer’s contact details and relevant policy numbers
• contact details of specialist flood protection companies in your area
• alternative accommodation details
• telephone numbers and addresses for furniture storage facilities
• contact details for furniture restorers.

Where possible, take photographs of possessions and keep these with your plan. It is advisable to store your plan electronically, ensuring there is a back-up and that it can be accessed remotely.

For businesses, flood should be one of the events considered in your business continuity plan. The Environment Agency warns businesses to prepare contingency plans. Most businesses can save between 20% and 90% on the cost of lost stock and movable equipment by taking action in advance.

Business continuity plans should be site specific and the level of complexity and detail appropriate to the company. Plans should be reviewed regularly to ensure they are still relevant and tested and rehearsed to evaluate effectiveness.

A relevant and up-to-date plan will demonstrate to insurers and lenders that you’ve taken a proactive approach to risk management and can help stabilise the cost of your insurance in the long term.

4. Manage the risk

For homeowners, there are simple things you can do to protect your treasured possessions and home contents, such as moving belongings upstairs or to a higher point in the property. You can also use plastic covers to seal airbricks and sandbags to create water barriers. Reuseable floodboards can also be fixed to door and window frames.

The Environment Agency advises on more permanent measures including laying ceramic tiles instead of carpets on the ground floor, raising the height of electrical sockets to 1.5 metres above ground floor level, using lime plaster instead of gypsum on walls, fitting stainless steel or plastic kitchens instead of chipboard ones and fitting non-return valves to all drains and water inlet pipes.

Regularly checking roofing, guttering, drainpipes, drains and water storage tanks to detect and repair damage early is also advisable.

Businesses should implement a system of checks as part of a risk management programme, including regular inspection of gutters, pipes and plumbing and periodic checks that all stock and key items of equipment are at least 150mm off the floor. In addition to this, keeping supplies of permanent or semi-permanent flood protection products will enable you to act quickly to protect your property from potential damage.

After a flood

The ABI, Health Protection Agency and Environment Agency provide advice for home and business owners dealing with the aftermath of a flood, including the following key points:

• Contact your insurer as soon as possible.  Most home insurance providers offer 24-hour emergency helpline services to arrange for repairs to be carried out and damage to be inspected.
• Avoid walking or driving through floodwater. The Health Protection Agency states that the main threats to health during and immediately after a flood are drowning and injuries caused by accidents in flowing water. Six inches of fast flowing water can knock you over and two feet of water will float your car.
• If your property or workplace is flooded make sure the building is safe before you enter and ensure electricity and gas supplies are switched off.
• Do not use electricity or water supplies until the ‘all clear’ is given.
• Keep the number of people entering the building to a minimum. All people involved in cleaning should wear protective clothing and business owners should ensure health and safety procedures are adhered to.
• Most home insurance policies will cover the cost of alternative accommodation, up to a specified limit, if you need to move out of your home while it is being repaired.
• Once flood water has receded, disinfect floors and furnishings. Where practical, leave doors, windows and cupboards open. If possible, keep rooms heated. The Health Protection Agency provides advice on cleaning up after flooding on their web site at www.hpa.org.
• If necessary, arrange for temporary repairs to be carried out to stop any damage getting worse. Keep receipts, as these will be needed for your insurance claim.
• Always make your own record of flood damage – photograph or video record your damaged property and list your property and belongings.
• Do not rush to redecorate, as it may take some weeks for the property to fully dry out.
• Comprehensive motor insurance will cover flood damage caused to vehicles. Motor Fleet and Commercial Car/Vehicle policies will indemnify against flood provided Comprehensive cover is purchased. If you have a number of vehicles stored at your premises at any one time, you may want to move them to a different location or higher ground to minimise losses.

For further information visit:

• Health Protection Agency - http://www.hpa.org.uk/
• Environment Agency - http://www.environment-agency.gov.uk/

• The Association of British Insurers - http://www.abi.org.uk/

Contacts

If you would like to discuss your home or business insurance and risk management needs, please call your usual Perkins Slade contact or dial 0121 698 8000 to speak to a member of the Private Client or Corporate team.

Sources

• The Pitt Review: Lessons learned from the 2007 floods
• Flooding and your insurance Claim, BBC News, Business, 23rd November 2009
• Health Protection Agency - http://www.hpa.org.uk/
• Environment Agency - http://www.environment-agency.gov.uk/

• The Association of British Insurers - http://www.abi.org.uk/

Whilst every care has been taken to ensure the accuracy of the contents of this publication, the information is for general guidance only.

Click here to read more.

We have handled incoming International business from the USA and Europe for several years and have slowly established that whilst London may be the world centre of insurance capacity and expertise, Birmingham too is a centre of excellence.  We are committed to the provision of a close personal service of the needs of UK based subsidiaries whether they are a 2/3 person sales office, a distribution warehouse or a full blown manufacturing or assembly plant.  Our introducing friends from Harrisonburg or from Hamburg like the absence of arrogance they find in London, our commitment to understand their customers business risk exposures and our service provision, whether the account pays £2,000 or £200,000.  None of this is different to us, it is how we are to all our customers, international or domestic.

With the disastrous news of the impact of the so called Credit crunch on American businesses as described on so graphically by the UK press and media, we decided to find out the reality for ourselves.  Additionally it was an opportunity to open some new doors or renew flagging relationships so we concentrated on Washington, the Carolinas and Virginia. 

I was in Charlotte 2 years ago, a thriving dynamic city and the second largest banking centre after New York.  In 2009 Wachovia Bank has disappeared into Wells Fargo leaving multi floored city centre office blocks resembling the beginning of a ghost town.  Bank of America is tottering on the brink and their numerous divisions are being scaled down or closed.  Executive positions are virtually non existent and the reality of long term unemployment is stark, but are people downhearted, absolutely not! 

Boutique firms are springing up showing the swiftness of decision making and the flexibility of approach that their former employers had forsaken in the dubious quest for growth.  The city has galvanised itself sending teams into other States, into Europe and Asia persuading potential investors that the quality of life, the infra structure and the resources in Charlotte makes it the obvious location for their investment and these efforts are paying off.

It is this ‘can do’ approach and the willingness to find other options that I found in Greensboro, in Raleigh, in Richmond and all the other towns and cities that were on my 976 mile journey.  Construction is decimated, housing remains flat but everyone believes President Obama’s commitment to highways, bridges and other national projects will re-stimulate the economy.  Americans are looking for the alternative answer, the new idea or innovation, the excitement of the unknown.  I sensed in middle class America an acceptance that what they have had, has gone and they will replace it with something else.

The USA remains the West’s principal economic driver and if you don’t concentrate on it, remembering the three R’s of Research, Resource and Renewal at all times, you will miss out!

BABC Midlands
June Newsletter 2009

BABC Midlands
75 Harborne Road
Edgbaston
Birmingham
B15 3DH

Tel: 0121 454 6171 ext 2008
Fax: 0121 607 0130
Email: babcmidlands@babc.org.uk
Web: http://www.babcmidlands.org.uk

The World Health Organisation has recognised the significance of the threat by raising the level of alert to phase 6; this means the virus is spreading rapidly in communities in several countries and we are at the start of a global pandemic. The development is unlikely to change the approach in the UK; up until now, the government has focused on containing outbreaks with measures such as school closures and helping healthcare professionals, businesses and communities understand more about the virus and how it is spread.

As the number of new cases continues to rise on a daily basis, many companies are thinking about the potential impact to their business and how they can protect their employees. What steps should you take to responsibly manage this risk?

Pandemic – impact on staffing levels

The Department of Health estimate that 50% of the population could become ill with pandemic flu; this could have a devastating impact for businesses. In addition to a high rate of absence through illness, employees may also take time off to look after sick relatives or, if there are school closures, parents may need to cover childcare. Add to this the number of people who will be absent from work due to other illnesses or injuries, and your business could be left struggling to operate.

While companies will insure against loss of premises, loss of staff can be overlooked; even though high rates of absenteeism can be equally damaging.

In addition to a reduction in productivity, your business may suffer from loss of key skills and knowledge, increased pressure on remaining staff and the financial burden of additional recruitment and training costs for temporary staff.

So what can you do to reduce the risk to your employees and business?

Risk management

Review your procedures in relation to a pandemic, with particular emphasis on hygiene, sickness and travel. Neglecting risk management could leave you open to claims from employees and/or third parties.

• Hygiene
  While maintaining high standards of hygiene is already important in industries where there is an increased risk of contamination; it is an area that every business should focus on. The Health and Safety Executive and the Department of Health provide comprehensive guidance, with general workplace advice for businesses and more detailed guidance for those working in healthcare and other high risk areas.

• Travel
  Stay up to date with government advice and restrict business travel accordingly. For guidance on foreign travel visit the Foreign and Commonwealth Office web site a www.fco.co.uk.

  Business Travel policies provide cover for cancellation due to illness, however, insurers’ polices can vary; talk to your broker to confirm what’s included in your travel insurance and any limitations and exclusions.

  Ensure your business travel guidelines are regularly updated in line with Foreign Office advice and that travellers are aware of your sickness policy. You may also want to ask staff to inform you if they plan to travel to affected countries whilst on annual leave.

• Sickness
  The HSE advises employers to ask staff to stay at home if they have flu-like symptoms, or if they think they may have been exposed to the swine flu virus.

Communicate changes to protocols effectively to staff and make information easy to access and highly visible. It is also advisable to find out what measures your suppliers, customers, and any others you deal with, have implemented. Your customers may also appreciate an outline of the measures you have put in place to manage the risk.

Customer communication would also need to be responsibly managed, and any person who has been in recent contact with an infected person should be informed.

It is also important to ensure you have the right cover in place. Ask your broker to review your insurance portfolio including cover, limits and exclusions.

Insurance

Your Business Interruption policy may include notifiable contagious diseases, but if it doesn’t, the availability and cost of cover may be prohibitive. Talk to your broker about the options for cover extensions or alternative covers that could provide added protection, including loss of income and/or increased cost of working.

Key Man insurance covers the business costs associated with the loss, through death or illness, of a key employee. Consider which people are fundamental to your business; in addition to directors and senior management, there may also be specialists with unique experience or knowledge.

Business continuity

Most businesses will have a disaster recovery plan but, in many cases, this will deal with loss of property and not absent staff, even though this can have just as significant an impact to the financial stability of your business.

Review your disaster recovery plan to ensure you have measures in place to cope with the absence of large numbers of staff. Part of this process would be to identify key dependencies and introduce skill/knowledge sharing, where practical, to reduce reliance on key people.

Ensure your key business processes and procedures are documented, up-to-date and stored so that they are centrally accessible and so they can also be accessed remotely.

Review your homeworking arrangements and IT capabilities – can people access email and your business network at home?

Barbara Ball, Associate Director - Operations, concludes,

"By putting measures in place to minimise the risk of introducing or spreading the virus among staff, you’ll not only be looking after employee welfare, you’ll also be protecting your business from damaging costs, tarnished reputation and potential claims from employees, suppliers, customers and other third parties."

For more information about this article contact Barbara Ball, Perkins Slade, 0121 698 8000.

For further information on risk management and business continuity
If you need assistance creating or reviewing your Disaster Recovery Plan please contact Julia Harrop on 0121 698 8035 or speak to your usual contact at Perkins Slade. We can provide a simple online solution for building a robust disaster recovery plan and risk management software to help you identify, prioritise and manage the key risks to your business.

For advice on swine flu

NHS
www.nhs.uk/AlertsEmergencies/Pages/Pandemicflualert.aspx

European Centre for Disease Control
www.ecdc.europa.eu/en/Default.aspx

World Health Organisation
www.who.int/csr/don/en/

Health and Safety Executive
www.hse.gov.uk/

Department of health
www.dh.gov.uk

Providing a firm reminder that gross negligence manslaughter has not gone away, a company director, Peter Eaton, has also been charged with that offence together with an offence contrary to s.37 of the Health and Safety at Work etc Act 1974. Mr Eaton is due to appear at Stroud Magistrates' Court on 17 June facing charges as an individual and on behalf of the company.

An organisation is guilty of corporate manslaughter if the way in which its activities are managed or organised causes a person's death and amounts to a gross breach of a relevant duty of care owed to the deceased. A substantial part of the failure within the organisation must have been at a senior level.

A conviction for gross negligence manslaughter carries a maximum sentence of life imprisonment, whilst a conviction for corporate manslaughter against an organisation attracts an unlimited fine. If the Sentencing Advisory Panel's sentencing recommendations are implemented, it is expected that the starting point for a fine for corporate manslaughter committed by a first-time offender pleading not guilty, should be five per cent of their average annual turnover for the three years prior to sentencing. The court should then take into account aggravating or mitigating circumstances, arriving at a fine which is likely to fall between 2.5 to ten per cent of turnover. The Act also allows the court to make a publicity order requiring a business to publicise its failures and any remedial action required.

Since April 2008 the HSE have recorded 228 fatal accidents at work. It is to be anticipated that a number of corporate manslaughter investigations are presently underway and likely to result in prosecution. The police take the lead in these investigations with significant input from the HSE. It was estimated by the government that they would not expect to prosecute more than 3-4 cases per year. The outcome of these investigations will be awaited with interest.

It is perhaps surprising that the CPS did not target a larger organisation for the first prosecution with the potential for a multi million pound fine. Disappointing also as this would have provided some useful guidance on how the Act will be applied to larger UK businesses, in particular illuminating the application of phrases such as "senior management" and "management failure". This may reflect the historical tendency to target those organisations where senior management and the chain of decision making are more readily identifiable, making a prosecution more likely to succeed. Certainly in this case the directors in such a small company would have been closely associated with the day to day running of the business, making it relatively easy to identify a controlling mind under the pre-Act provisions. It should be remembered that the purpose of the Act was in fact to remove the obstacles to establishing gross negligence such as the identification of a controlling mind. Always a difficult exercise in larger organisations with more complex management structures. For this reason the majority of successful prosecutions pre-Act involved small businesses, suggesting the new legislation has made little progress one year on from its introduction.

This prosecution does however stress the importance of organisations taking the opportunity to review management systems as well as their health and safety procedures. Directors are advised to check that they have adequate liability insurance to cover individual investigations and prosecutions.

For further information please contact Suzanne Day.
Please click here to download a pdf version of this alert.

Source: Beachcroft LLP 30/04/2009

Beachcroft Insurance Litigation Alert is published on a general basis for information only and no liability is accepted for errors of fact or opinion it may contain. Professional advice should always be obtained before applying the information to particular circumstances.

1. Don't compromise on risk management.
Understand your exposure to loss and manage the risk effectively. Do not try to save money by cutting down or allowing your controls to lapse. Insurers will reward companies with robust risk management procedures.

2. Don't fall foul of employment law.
Job cuts increase the possibility of claims from employees. Breaches of employment law (e.g. unfair dismissal and discrimination); and Employers' Liability claims proliferate. We will assess the exposures and work with you to manage them.

3. Monitor financial performance.
Keep us informed of significant fluctuations in budgeted projections.

We will negotiate with insurers to minimise the impact on adjustment premiums at year end.

4. But budget accurately!
Do not be tempted to save money by under projecting turnover, payroll or gross profit figures. Insurers will get you in the end when your deposit premium is adjusted at annual declaration time. Realistic forecasting will ensure we negotiate the best deals.

5. Protect against bad debts.
Some of your customers will want to ease their cash-flow by slowing down the payment process, others will not be able to pay!

Whilst the availability of Trade Credit Insurance has become restricted, talk to our Credit Team, they are helping businesses through the credit crunch with their innovative strategies.

6. Review your terms of Sale and Purchase.
Do your suppliers' demand minimum levels of cover? For example, Product Liability rates are high in certain trade sectors; are the imposed limits for cover realistic? Will your suppliers accept a lower limit?

Do you import goods CIF? If your supplier arranges transit insurance and adds the premium to the invoiced cost of goods, you may consider purchasing ‘ex-works' and arranging the insurance yourself. This may save money.

7. Keep a close eye on the money.
Exposure to internal and external fraud increases in an economic downturn. Insurance is no substitute for tight financial controls, but talk to us about protecting your business.

8. Consider premium finance.
Spread the cost over the duration of the policy – and boost your cash-flow.

9. Share your strategic plans with us.
If you are considering a divestiture or acquisition, tell us. Our mergers and acquisition experts will undertake insurance due diligence, put you in touch with a funding source and carry out supplier credit management. If it is a divestiture, we will assist you with a pre-sale risk management.

10. Review your employee benefits programme.
Cash plans are available and considerably cheaper alternative to Private Medical Insurance. Talk to us, we can help!

Lynn Richards-Cole, Associate Director
0121 698 8091
l.richards-cole@perkins-slade.com

Well perhaps, understandably, given the considerable challenges that both individuals and businesses alike are currently facing, insurers have not exactly been shouting this from the rooftops. Not to the customer at least! However, talk to any broker and they will all admit to having been approached by a number of major insurers to discuss their requirement for rate growth.

It is almost certain that a hard market is looming. The insurance industry has enjoyed softening rates for a number of years but conditions are now starting to feel different. The insurance market is cyclical and generally 'turns' every seven years.

Rates have been in freefall for two or three years but insurers are now beginning to see claims inflation running much higher than they might have anticipated, resulting in many of them returning operating losses in excess of 100%. Add to this the fact that reinsurance rates have risen globally by as much as 8% (UK rises were slightly less) and you can appreciate that something has to change.

Interestingly, while the current financial crisis has affected pricing, it has not been as significant as it might have been due to the effective risk and capital management practices that many prudent policyholders have put in place.

What level of increase should you expect to see?

In short, insurers who have commented thus far are looking for single digit increases across the main classes of business i.e. Property, Liability and Motor. (This is somewhat different to the huge spikes we saw in 2002/3.)

However, they are at pains to emphasise that they will be “intelligent” about this and, providing they can see the level of growth they require across the entire portfolio, they will look at each risk on its merits and not just apply a blanket increase.

However, beware. This rarely happens in practice, particularly when insurers have to 'play catch up' as the year progresses.

So, what can you do to lessen the impact on your business following this change in attitude in the market?

Do not panic and reach for the telephone. Remember, we still live in a competitive marketplace. There is no doubt that the number of insurers has diminished over the years but there are still a healthy number of financially strong and hungry carriers out there. Capacity still seems to be in abundance and underwriters' new business targets are as challenging as ever, so there is no doubt there is still a deal to be done.

IML was set up in response to a concerted lobby from National Sports Associations, including members of the CCPR, for an alternative to the conventional placement of insurance. This came as a direct result, 5 or 6 years ago, of the “hardening” of markets, with significant increases in premium and, in some cases, difficulty obtaining satisfactory cover.

As a consequence IML was launched on 1 December 2006, with support from the CCPR and Perkins Slade Ltd. More than 300 National Associations, representing three million individual participants, have subsequently joined the IML Scheme.

Ron Forrest, Co-Chairman of IML said:

"In reality, in the two years that IML has been trading, conditions have "softened" considerably and significantly more capacity has become available in the composite markets, enabling satisfactory cover to be obtained at reasonable cost. As a result the requirement for an alternative, such as IML, is currently not so great. IML, therefore, has decided for now to suspend the writing of new business and not invite renewals after 30 November. National Sports Associations covered by IML will see their arrangements remain in place until their next date of renewal. Any claims arising from those arrangements will continue to be handled in exactly the same way."

John Ollard, Finance Director of the CCPR and Co-Chairman of IML said:

"The role of the CCPR is to provide specialist support to its Member Governing and Representative Bodies of Sport and Recreation in the United Kingdom. In the aftermath of 9/11 and other events, many of our members came to us complaining about unfair increases in premium and requesting an alternative. The fact that so many National Associations participated in IML is a testament to the value of its work."

Richard Doubleday, Director of Sport at brokers Perkins Slade Ltd said:

"Until further notice, Perkins Slade clients will have their insurances placed on a conventional basis, using underwriters who have been involved in sport and recreation for many years. The transition will be seamless. Although insurance market conditions are currently to the benefit of sport and recreation in general, it is very possible they will harden at some point in the future and premiums will rise. We expect the IML Board will continue to monitor the markets and, if and when they do change, Insuresport Mutual will consider inviting renewals once more."

Editors notes:

1. The Central Council of Physical Recreation is the National Association of some 270 Governing and Representative Bodies of Sport and Recreation in the United Kingdom.

2. Perkins Slade Ltd are sports specialist insurance brokers, based in Birmingham.

3. IML was set up on 1 December 2006. The rationale was as follows:

   Perkins Slade provide a unique Civil Liability Policy for Sport and Recreation. Effectively it covers all non criminal legal liability in a single wording, embracing Public and Products Liability, Professional Indemnity, Libel and Slander and Directors' and Officers' Indemnity. It was created specifically for National Sport and Recreation Associations.

   From 1988 to 2006 it was underwritten by Insurers Royal & Sun Alliance and in that time over 300 National Associations have joined the Scheme, providing protection for over 3 million individual participants.

   In 2006, when IML was launched, 50% of all risks were placed with Royal & Sun Alliance. The remaining 50% was placed with IML.

   A "Mutual" operates to offer protection to its members and is run on behalf of these members (those who buy cover from the Mutual). This Mutual only offers cover to sports organisations, activity business and leisure activities. The Mutual has a Board, comprised of representatives from CCPR, Perkins Slade, and an independent director and advisors (lawyers, accountants etc). Heritage Mutual Management Ltd provides management services to the Mutual and Great Lakes UK (a member of the Munich Re Group) provides insurance to the Mutual.

For further information please contact:

Keith Carten
Tel: 020 7621 3722
Mobile: 07939 248358
Email: keith.carten@heritagekane.com

Richard Doubleday
Tel: 0121 698 8159
Mobile: 07785 282 072
Email: r.doubleday@perkins-slade.com