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Assigned risks pool

The assigned risks pool is for firms that are unable to obtain professional indemnity insurance (PII) in the insurance market. It provides emergency cover for a period of up to two years so that firms can continue to practise.

Entering the ARP

Run-off cover can be provided in the ARP if it's not available in the general insurance market.

If you're unable to obtain insurance on the open market:

You'll need to enclose with the agreement a cheque for £1,000 plus applicable insurance premium tax. Insurance cannot be provided if this deposit premium is not paid. A final premium will then be assessed.

The firm will be admitted to the ARP for an emergency period of 30 days when the signed agreement and premium have been received. During this period, the firm (with the assistance of its brokers) is required to obtain evidence that the insurers included in the list attached to the entry procedure have declined to offer insurance (known as 'declinatures'). A firm may also claim constructive declinature.

After your firm has been accepted into the assigned risk pool (ARP), ICAEW will arrange for a practice review to:

  • help your firm identify the reason(s) why it could not obtain cover;
  • recommend actions to help your firm obtain insurance cover in the open market;
  • provide insurers with information to assist in assessing the underwriting risk and to set the final premium.
    Your firm is required to pay for an ICAEW practice review visit. This is a condition of entry into the ARP.

Overview of the visit process

The visit will be tailored to suit your firm’s specific circumstances. Before the visit takes place, your firm is required to pay the full estimated cost. An adjustment credit note or invoice will be issued at the end of the visit process.

For a maximum of two years. At the end of the first year, the firm will be asked to complete a proposal form to obtain cover for a second year.
Only in very exceptional circumstances is an extension granted for time in the ARP beyond two years. Before the firm leaves the APR at the end of two years, a further review visit (at the firm's expense) may be required.

Leaving the ARP

A firm can leave the ARP at any time and, if appropriate, a return of premium is paid. The firm must comply with the PII regulations.

You should take active steps to obtain insurance in the market place well before the end of the two-year period. It helps to get the services of a broker who is knowledgeable in PII matters.