In a bid to make it easier for its members to buy run-off professional indemnity cover, the RICS has ended its broking agreement with RICS Insurance Services.
RICIS was 98% owned by brokers Bowrings and Bain Clarkson, while the RICS held a 2% stake.
Michael Pattison, RICS chief executive, said: “With the continuing volatility in the insurance market, we believe it is now right for the RICS to make arrangements for a dedicated underwriting agency to be available to meet the requirements of members.”
Pattison confirmed that the institution is in discussions with Resource, an agency run by David Lowe, head of Lloyds syndicate 657. Resource has five regional offices and will allow RICS members to discuss insurance problems directly with the agency, as well as placing cover through it. While the agency will charge an operating fee, it will cut out the brokers’ commission.
Pattison said: “We believe it will provide improved options for handling the problems of run-off cover and the need for an assigned risks pool arrangement as a last resort for surveying businesses facing difficulty in renewing cover.”
