Review of ICAEW's PII Regulations

Background

ICAEW is conducting a review of its professional indemnity insurance (PII) requirements. The aim is to ensure that the arrangements remain fit for purpose and provide adequate protection to the public while being mindful of the cost to the profession. The review will close on 31 July 2023.

Insurance requirements

PII is mandatory for ICAEW members in public practice and individuals and firms that undertake activity which is regulated by ICAEW under statute (i.e., audit, insolvency, exempt investment business and probate).

Firms which are within scope of ICAEW’s regulations have a duty under the ICAEW PII Regulations to take reasonable steps to meet claims arising from public practice. As part of this, firms/groups of firms with fewer than 50 principals must put in place ‘qualifying insurance’. This is insurance which:

• is provided by a ‘participating insurer’ (see below);
• complies with ICAEW’s minimum approved policy wording; and
• provides 6 years retroactive cover (i.e., cover for claims arising in relation to activities carried on by the firm during the last 6 years save for circumstances and claims known about prior to the inception of the policy).

The current insurance requirements are set out in the following:

• ICAEW’s PII Regulations and guidance
• The Minimum Approved Wording
• The availability of The Assigned Risks Pool (ARP)

Read a brief summary of the current requirements It is recommended the summary is read in conjunction with ICAEW's full PII Regulations.

Let us know your thoughts

We are keen to understand your experience when dealing with PII and your views on aspects of the ICAEW PII Regulations, particularly those that prescribe the type and level of cover that our firms are required to hold.

We would welcome feedback on positive experiences, as well as feedback on issues or concerns.

• Have your say now.