Background -
The Institute is considering whether any changes may be required to its Professional Indemnity Insurance (“PII”) requirements to ensure they remain fit for purpose.
Insurance requirements
The Institute’s PII requirements are set out in Chapter 7 of the Public Practice Regulations.
Firms within the scope of the Public Practice Regulations have a duty to take such steps as may reasonably be expected to meet claims arising from public practice. As part of this, firms must put in place ‘qualifying insurance’. This is insurance which:
is provided by a ‘participating insurer’ List of participating insurers ROI and List of participating insurers UK;
meets the minimum limit of indemnity specified in Regulations 7.16 and 7.17;
complies with The Institute’s Minimum Approved Wording; and
provides six years retroactive cover (i.e., cover for claims arising in relation to activities carried on by the firm during the last six years save for circumstances and claims known about prior to the inception of the policy).
Share your thoughts
We are keen to understand your experience when dealing with PII and your views on aspects of Chapter 7 of the Public Practice Regulations, particularly those that prescribe the type and level of cover our firms are required to hold. If you would like to share views on any of the following areas, please email professionalstandards@charteredaccountants.ie with your comments.
Do you think the Institute’s current PII requirements are appropriate for your business and provide sufficient protection against claims arising from public practice?
What are the major challenges to you/your firm when purchasing PII? (Coverage, limit of indemnity, price etc)
Do you think the minimum limit of indemnity specified in Regulations 7.16 and 7.17 is too high, too low, or at an appropriate level?
Do you think the PII run off requirements at Regulation 7.11 provide sufficient protection to the public?
Would you be concerned that any changes to the current run-off requirements could have a detrimental effect on the availability or cost of run-off insurance in the accountancy market?
Do you have any other specific concerns or feedback about the Institute’s PII requirements?
What changes, if any, to the PII requirements would facilitate your business as well as ensuring protection to the public?
The high-level outputs of this review will form part of our engagement with ICAEW and ICAS, who are also engaging with their member firms on this issue.
You may also wish to share your views using ICAEW’s online questionnaire by 31 May 2023. Whilst this particular project is being led by ICAEW, the outputs may have implications for Institute firms given the close cooperation of all the chartered accountancy bodies in relation to PII. If completing the ICAEW online questionnaire, there is an option to complete as a member or firm regulated by another accountancy body, and any questions which are specific to ICAEW members only can be marked as not applicable. Review of ICAEW’s PII Regulations | ICAEW
We will provide further updates to firms in due course if any substantive changes are envisaged to the Institute’s current PII requirements.