RICS has launched a consultation to tackle problems about current risk and pricing in professional indemnity insurance in the UK valuation sector that it cliams are creating market dysfunction.
According to RICS, the quantity and cost of handling alleged negligence claims is having a significant impact on the cost of PII, not just for firms who have received claims but for the market as a whole. These structural problems could reduce client protection, limit competition within the market and lead to market failure, it says.
RICS is looking to combat this and has commissioned a working group of valuation specialists, including Sir Bryan Carsberg, and key members of the insurance industry. The group’s report has been unveiled and RICS is now calling for input from members and stakeholders to help shape the final report.
The three-month consultation began on 1 December and the final proposals will be put to the government, lenders and the insurance sector early next year.
Robert Peto, RICS spokesperson, said: “RICS is extremely concerned about the practice of speculative claim letters being sent to property valuers on behalf of banks. For this reason
