Professions Australia - A national organisation of professional associations

<body bgcolor="#FFFFFF" text="#000000"> <br><a href = "thecouncil.html">About Professions Australia</a><br> <a href = "branches.html">Branches & NSWCOP</a><br> <a href = "policymaterial.html">Policy Material</a><br> <a href = "knowledgenetwork.html">Knowledge Network</a><br> <a href = "alertsandnews.html">Alerts and Newsletters</a><br> <a href = "membership.html">Membership Information</a><br> <a href = "office.html">Office & Contacts</a><br> <a href = "sitesearch.html">Search</a><br> <a href = "Memberlogin.html">Member Login</a><br> <a href = "memberlogout.html">Logout</a><br> <a href = "Homepage.html">Home</a><br> <a href = "Constitution.html">Constitution</a><br> <a href = "YoungProf.html">Young Professionals</a><br> <a href = "ethicsresource.html">Ethics Resource Centre</a><br> <a href = "history.html">History</a><br> <a href = "visionrole.html">Vision and Role</a><br> <a href = "Board.html">Board</a><br> <a href = "committees.html">Committees</a><br> <a href = "mediaspeeches.html">Media, Speeches</a><br> <a href = "award.html">Professional of the Year Award</a><br> <a href = "archives.html">Archives</a><br> <a href = "NSWCOP.html">NSWCOP</a><br> <a href = "victoria.html">Victoria</a><br> <a href = "Queensland.html">Queensland</a><br> <a href = "wa.html">Western Australia</a><br> <a href = "sa.html">South Australia</a><br> <a href = "tasmania.html">Tasmania</a><br> <a href = "act.html">ACT</a><br> <a href = "competitionpolicy.html">Competition Policy</a><br> <a href = "insurance.html">Insurance</a><br> <a href = "highereducation.html">Higher Education</a><br> <a href = "other.html">Other</a><br> <a href = "knetsample.html">Knowledge Base Sample</a><br> <a href = "kbase.html">Knowledge Base</a><br> <a href = "kpeople.html">Knowledge People</a><br> <a href = "ktalk.html">Knowledge Talk</a><br> <a href = "submitkbase.html">Submit to Knowledge Base</a><br> <a href = "submitkpeople.html">Submit to Knowledge People</a><br> <a href = "alertssample.html">Alerts and News Sample</a><br> <a href = "alerts.html">Alerts</a><br> <a href = "newsletters.html">Newsletters</a><br> <a href = "subscription.html">Alerts and News Subscription</a><br> <a href = "criteria.html">Criteria</a><br> <a href = "Rates.html">Membership Rates</a><br> <a href = "member.html">Member Associations</a><br> <a href = "KBManual.html">Knowledge Base Manual</a><br> <a href = "defineprofession.html">Definition of a Profession</a><br> <a href = "KBWP.html">Knowledge Base White Papers</a><br> <a href = "ValueStatement.html">Value Statement</a><br> <a href = "Apply.html">Apply to join</a><br> <a href = "Constitutioncontinue.html">Constitution continued</a><br> <a href = "ParticReportsNov2003.html">Participant reports Roundtable Nov 2003</a><br> <a href = "latestnewsletter.html">Latest Newsletter</a><br> <a href = "bankruptcy.html">Bankruptcy legislation</a><br> <a href = "whatsnew.html">What's New</a><br> <a href = "ethicsplan.html">Ethics Action Plan</a><br> <a href = "definitionprofession.html">Definition of a Profession</a><br> <a href = "ethicscodes.html">Codes of Ethics</a><br> <a href = "ethicseducation.html">Ethics Education</a><br> <a href = "ethicsforum.html">Ethics Forum</a><br> <a href = "relatedsites.html">Related Sites</a><br> <a href = "ethicsreading.html">Reading</a><br> <a href = "ethicscasestudies.html">Ethics Case Studies</a><br> <a href = "ethicsresearch.html">Ethics Research</a><br> <a href = "CPSS.html">Competition Policy Submission (1998)</a><br> <a href = "SERC.html">Submission to Economics References Committee (May 2002)</a><br> <a href = "SSWSTTTR.html">Structured Settlements - Why support them through tax reform (May 2001)</a><br> <a href = "STTRLN.html">Submission to the Review of the Law of Negligence (August 2002)</a><br> <a href = "MRPWBI.html">Media Release: Professions want broader indemnity agenda (June 2002)</a><br> <a href = "PORM.html">Policy on Risk Management (November 1997)</a><br> <a href = "PR2001.html">AGM 2001 Presidents Address</a><br> <a href = "AFGFA.html">Professional Liability - A fair go for all - 1998</a><br> <a href = "TPPIAC.html">The Professions, Public Interest and Competition Policy (2000)</a><br> <a href = "APSUT.html">Australia's Professional Services under threat 1997</a><br> <a href = "NCPP.html">National Competition policy & the professions 1997</a><br> <a href = "DWRME.html">Dealing with risk. Managing expectations 1996</a><br> <a href = "GM2002.html">GM 2002 Presidents Speech</a><br> <a href = "AGM2002.html">AGM 2002 Presidents Address</a><br> <a href = "MediaRelease25Nov.html">Ipp Media Release</a><br> <a href = "MediaReleaseNov02.html">Professional Indemnity Insurance Crisis - media Release</a><br> <a href = "AGM1999.html">AGM President Address 1999</a><br> <a href = "SCAGMINCO.html">Submission to SCAG-MINCO 9 Dec 2002</a><br> <a href = "JCCV.html">John Castles CV</a><br> <a href = "BGCV.html">Barry Grear CV</a><br> <a href = "DTCV.html">David Thomson CV</a><br> <a href = "VICletter.html">Victorian market failure in Professional Indemnity insurance</a><br> <a href = "CVSTP.html">Coonan's view a shock to professionals</a><br> <a href = "PBULC.html">Peak body urges liability cap</a><br> <a href = "LDRA.html">Liability decision rouses anger</a><br> <a href = "PLNHG.html">Proportionate liability is not Holy Grail</a><br> <a href = "GPAS.html">Government position appears to be shifting</a><br> <a href = "pumta.html">Professions urge ministers to act now</a><br> <a href = "tpauc.html">TPA 'undermines capping'</a><br> <a href = "mtstmt.html">Market 'too small and too much trouble'</a><br> <a href = "pimfnps.html">PI market failure needs a package solution</a><br> <a href = "cfncoll.html">Call for national cap on lawyers' liability</a><br> <a href = "POPSR.html">Policy on Professional Self-Regulation (1990)</a><br> <a href = "RDEWL.html">Role and Duties of an Expert Witness in Litigation (1998)</a><br> <a href = "107.html">Alert No 107 (29 May 03)</a><br> <a href = "1071.html">Alert No 107 Attach 0ne</a><br> <a href = "1072.html">Alert No 107 Attach Two</a><br> <a href = "1073.html">Alert No 107 Attach three- Implementation paper</a><br> <a href = "1074.html">Alert No 107 Attach Four</a><br> <a href = "Treasurer.html">Paul Meiklejohn</a><br> <a href = "Boardmemberone.html">Monica Persson</a><br> <a href = "nswcopcontacts.html">Contacts</a><br> <a href = "nswcopobjectives.html">Objectives</a><br> <a href = "nswcoppsl.html">Professional Standards Legislation</a><br> <a href = "nswcopevents.html">Events</a><br> <a href = "nswcopnletters.html">NSWCOP Newsletters</a><br> <a href = "SeptHigherEd.html">Nelson reforms miss the main point, say professions</a><br> <a href = "PSCJune03Seminar.html">NSW PSC June Seminar</a><br> <a href = "VicCPAJuly03Seminar.html">Vic CPA professional indemnity seminar, 28 July 2003</a><br> <a href = "BrisbaneHandPI.html">John Hand Brisbane PI Paper, 30 July 2003</a><br> <a href = "ICAABrisbanePaper.html">Brisbane ICAA PI paper</a><br> <a href = "PolCampaignsArticle.html">Professions Australia learns lessons on political campaigns</a><br> <a href = "AnaGovan.html">Ana Govan (information technology)</a><br> <a href = "BrigetteHall.html">Brigette Hall (minerals)</a><br> <a href = "NikkiBrennan.html">Nikki Brennan (architecture)</a><br> <a href = "NinaQuinn.html">Nina Quinn (audiology)</a><br> <a href = "LukeFraser.html">Luke Fraser (construction)</a><br> <a href = "PhilippaThomson.html">Philippa Thomson (dentistry)</a><br> <a href = "KateWest.html">Kate West (engineering)</a><br> <a href = "profcomppublic.html">Professionalism, competition policy and the public interest: Issues paper (2003)</a><br> <a href = "SenateTPAbriefing.html">Senate TPA inquiry briefing notes March 2004</a><br> <a href = "ICActReview.html">Insurance Contracts Act review key documents</a><br> <a href = "ACCCinsurancereviews.html">ACCC insurance market pricing reviews</a><br> <a href = "SenatorCoonanwebsite.html">Senator Coonan website</a><br> <a href = "InsuranceCouncil.html">Insurance Council website</a><br> <a href = "CoonanJuly2003letter.html">Letter to Coonan on timing July 2003</a><br> <a href = "MinletterMar2004.html">Letter to Ministers on timing March 2004</a><br> <a href = "MinContOutMar2004ltr.html">Letter to Ministers against contracting out (March 2004)</a><br> <a href = "12March2004update.html">Update 12 March 2004</a><br> <a href = "TPAPSLinquiry.html">Senate Committee inquiry into Trade Practices Act amendments</a><br> <a href = "AGM2003Pres.html">AGM 2003 Presidents Address</a><br> <a href = "OMNov2003Pres.html">Ordinary Meeting November 2003 Presidents Address</a><br> <a href = "HobartMediaFeb2004.html">Comments on Hobart Insurance Ministers meeting Feb 2004</a><br> <a href = "Feb2004PISurveys.html">February 2004 professional indemnity surveys</a><br> <a href = "HigherEdltrs25Sep03.html">Higher Education letters 25 Sep 2003</a><br> <a href = "HigherEdmed8Oct2003.html">Higher Ed media 8 October 2003</a><br> <a href = "HigherEdltr6Nov03.html">Higher Ed letter 6 Nov 2003</a><br> <a href = "HigherEdltrs26Nov03.html">Higher Ed letters 26 Nov 2003</a><br> <a href = "HigherEdltr30Sep03.html">Higher Ed letter 30 September 03</a><br> <a href = "HigherEdAFR13Oct03.html">Higher Education AFR Op Ed piece 13 October 03</a><br> <a href = "pasub.html">National Competition Policy Review - PA Submission (2004)</a><br> <a href = "profoftheyear.html">Announcement of 2004 Professional of the Year</a><br> <a href = "membercodes.html">Examples of Member Codes</a><br> <a href = "codeprinciples.html">Code Principles</a><br> <br><B><SPAN style="FONT-SIZE: 18pt; FONT-FAMILY: Arial"> <P>Proportionate liability is not Holy Grail</P></SPAN><SPAN style="FONT-SIZE: 24pt; FONT-FAMILY: Arial"></B></SPAN></B><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"> <P>Date: 13/03/2003<BR></P></SPAN><SPAN style="FONT-SIZE: 12pt"> <P>Professionals throughout the country will welcome the assurance by the Assistant Treasurer, Senator Helen Coonan (AFR, Letters, March 11), that the federal government is prepared to amend the Trade Practices Act to facilitate state and territory professional standards legislation, including the capping of liability. </P></SPAN><SPAN style="FONT-SIZE: 12pt; FONT-FAMILY: Arial"> <P>I must take issue, however, with Senator Coonan's claim that achievement of proportionate liability was the Holy Grail for professionals for 30 years. This is not the case. Only a minority of cases involve multiple defendants. </P> <P>It also fails to recognise that the professional indemnity insurance market has collapsed in the past two years, with spiralling premiums, rising excesses and widening exemptions, and that it requires significant reforms. </P> <P>Professional bodies believe this market failure can only be overcome by a combination of proportionate liability and professional standards legislation, involving mandatory insurance to protect consumers and a regime of risk management and disciplinary procedures to reduce the incidence of claims. </P> <P>The actuaries Trowbridge Deloitte advise that capping will give insurers more certainty about the potential size of claims and their average size. According to Trowbridge, this should lead to premium reductions of 10 per cent to 20 per cent for smaller firms. </P> <P>This is supported by the CEO of QBE Insurance, Frank O'Halloran, who said in a recent interview (SBS, March 7) that professional liability premiums would rise this year by 50 per cent to 60 per cent with increased deductibles and some professionals unable to get cover. He added that, without capping on professional indemnity, premiums would continue to spiral. </P></SPAN><B><SPAN style="FONT-SIZE: 9pt"> <P>John Castles, </P> <P>President, Professions Australia, </P> <P>Canberra, ACT. </P></B></SPAN></B><SPAN style="FONT-SIZE: 12pt"> <P> </P></SPAN><SPAN style="FONT-SIZE: 9pt"></SPAN> </body>