<![CDATA[<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><P><A href="http://afr.com/"><IMG height=24 src="http://afr.com/images/afrlogo.gif" width=217 border=0></A></P><B><FONT face="Courier New" size=5>
<P>Market 'too small and too much trouble'</B></FONT><FONT size=5><BR></P></FONT><FONT face=Arial size=3>
<P>Kate Marshall<BR>28/03/2003 </P>
<P>Law Council of Australia president Ron Heinrich said the assessment of the Australian insurance market by underwriters in the UK was "too far, too small and too much trouble".</P>
<P>Mr Heinrich, a former chairman of LawCover Pty Ltd in NSW, said lawyers and other professionals could expect to pay anywhere between 400 per cent and 1000 per cent more for their non-compulsory professional indemnity insurance.</P>
<P>He blamed a combination of insurance company failures, natural disasters and the harder attitude of reinsurers reeling from a huge fall in the value of their share portfolios.</P>
<P>"Some in our profession may have great difficulty but for some, such as accountants, engineers and architects, it may well prove impossible to get cover," he said.</P>
<P>Mr Heinrich stressed the legal profession would escape the worst of the dramatic rises but only because of the compulsory professional indemnity schemes operated by each state's professional body.</P>
<P>He said law firms experienced at dealing with the London market would have a much easier ride than small and medium firms, which are already having difficulty getting adequate cover because of lost or reduced capacity in Australia.</P>
<P>"September 11, 2001, and a series of natural disasters around the globe have conspired to drive up reinsurance costs dramatically," Mr Heinrich said. "About $US200 million [$334 million] has been lost from reinsurers' balance sheets."</P>
<P>All this makes it easy to understand why insurers are reluctant to take on "long-tail" cover such as PII when they can offer "short-tail" household insurance instead.</P>
<P>According to Mr Heinrich, once top-up rises of 45 per cent take effect from July, law firms will find top-up is double the cost of compulsory insurance - a complete reversal of what a medium-size firm used to pay two years ago.</P>
<P>Mr Heinrich warned law firms wanting top-up cover exceeding $10 million to expect a big hit.</P>
<P>"The medium-sized firms will see a very significant increase in this next layer of top-up," he said.</P>
<P>Fortunately for lawyers in NSW, LawCover Plus lifted its top-up scheme to $18.5 million last year.</P>
<P>"Without that facility, it would be extraordinarily difficult for medium and small firms to get the extra," Mr Heinrich said.</P>
<P>Evidence of the insurance crisis is even more marked in the $50 million-plus layer, which last year was being quoted at between $6000 to $7000 per $1 million of cover compared with $600 per $1 million just a couple of years ago.</P>
<P>Despite their "clean" claims history, even the long-running compulsory schemes will not be immune from rises.</P>
<P>"Even though compulsory schemes have been able to hold the increase down, in the past 12 months they have still gone up between 20 per cent and 120 per cent," Mr Heinrich said.</P></FONT>
</body>]]>