Our underwriting philosophy is simple. We aim for stability and consistency and we underwrite prudently and equitably in order to achieve those aims.
STABILITY OF PRICING
We work closely with our risk management team and meet regularly with our Members to ensure we understand each Member’s business and approach to risk. We take that into account in our pricing to ensure we are charging an appropriate amount for the level of risk. We believe that insurance is there to be used which is why we do not penalise Members for making notifications. As a mutual, we are able to distance ourselves from the market cycle and smooth the peaks and troughs that the traditional market experiences.
CONSISTENCY OF COVER
As professional indemnity insurance is written on a claims made basis, we aim to keep the Rules consistent so our Members and their clients can feel comfortable that cover will be in place on the same basis when they have a claim as it was when they did the work. We do not make reactionary changes to the wording or introduce reduced limits in response to the traditional insurance market or outside influences. However, we do keep matters constantly under review in case it is in the best interests of the Association to restrict cover.
The Mutual operates at cost, so any underwriting surplus when a policy year has been finalised will either be added to the Association’s reserves or returned to current Members from that policy year. All major underwriting changes and proposed changes to the Rules have to be approved by the Association Board which is made up of representatives from the Member firms. Members are updated on any changes and policy year decisions on a biannual basis and have the opportunity to put a representative forward to be on the Board of the Association.