A simpler proposal form for 2015
To help ensure your renewal process is simpler and runs smoothly, we've listened to your feedback, and created an online renewal form. This will go live, for the majority of you, in the summer.
Key benefits include:
- Pre-populated fields, which means less work for you;
- questions tailored to your practice;
- no additional questionnaires (unless you have overseas offices);
- in-built error checking to ensure the accuracy of your proposal form and;
- a dedicated helpline, and enhanced help text, to assist you in presenting the best possible renewal submission.
We have also reduced the number of questions asked.
For example:
- We have removed questions relating to 'fixed fee' conveyancing in the conveyancing questionnaire and;
- we have reduced the number of work-split categories to make it simpler to complete.
While there is no getting away from the detailed information required by the insurers, our online proposal form will help you satisfy their requirements and give you access to the widest range of A rated insurers in the market,
What new questions are the insurers asking in 2015?
To ensure you get the best quotation you need to provide all the information requested by the insurers. Here's a summary of the new information you will need to prepare.
|
New Question |
Information Required |
Rationale |
|---|---|---|
|
Extension of leasehold interest transactions |
Firms that have acted in respect of applications to extend a leasehold interest, where the premium payable has been greater than £250,000, will require to provide details as to the number of such instructions, and the average value of the premium payable over a 3 year period. |
This is an emerging claims area for insurers, and they want to be able to identify how firms manage this type of work, and the risks involved. |
|
Fraud, Scams and Client Account risks |
There are two new questions in the risk management questionnaire regarding how firms manage internal and external fraud risks, including; invoice hijacking, vishing and cyber attack. There is also a new question on what procedures you have in place when requested to amend client bank details. |
The number of reported cases of fraud against solicitors has soared in the last two years. Insurers are reporting significant payments for the first half of the year. Cyber crime is a particular concern, and an area where many law firms are perceived to be vulnerable. |
|
Trading Styles, Trustee and Nominee Companies |
We are now requesting the SRA reference and postcode (where applicable) of all trustee and nominee companies and trading entities. NB: This will be retained in our secure database to save you from having to re-enter the data in subsequent years. |
By providing this information to insurers, they can ensure that the SRA do not mistakenly believe that an entity is uninsured. |
Online proposal form
We will provide more information on the roll-out of our online proposal form shortly. For those of you less comfortable working online, please be assured, while you will not be required to use our new online form, it has been carefully designed to be as user-friendly and intuitive as possible. The intention is that it should be easier to use than the existing pdf or paper forms.
Don't leave your renewal preparation until the last minute. Check out Part 1 of our pre-renewal guidance, and speak to your Lockton broker for more guidance on your PII renewal.