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Assigned risks pool

The assigned risks pool (ARP) provides cover for firms which cannot get cover from qualifying insurers or cannot reasonably afford the terms available to them. This might be because the firm has

  • a poor claims record.
  • a major claim outstanding but not yet decided.
  • other risk factors.

The cover is underwritten by the qualifying insurers in the same proportion as their share of the premium income from compulsory cover for the indemnity period in question.

At the July meeting of the Board, the Enforcement Strategy (ARP) was approved. The strategy sets out a programme of action to:

  • Tighten the monitoring and supervision of firms in the ARP;
  • Improve the incentives to firms to manage themselves out of the ARP;
  • Take steps to ensure that firms in the ARP pay their premiums or, if they do not, that they are managed out promptly;
  • Increase the SRA's capacity to manage the ARP, particularly to guard against the possibility of a large increase in the ARP at the time of renewal of policies (October).

An impact assessment has also been carried out.

Limitations on ARP cover

  • Firms may apply to be insured through the ARP for a maximum of 24 months in any five-year period.
  • If a firm is unable to obtain cover with a qualifying insurer in the open market by the end of the 24-month period, the firm will have to cease practice.
  • Firms will be required to pay a high premium, will be inspected and monitored (at the firm's expense), may be required to attend courses approved by the SRA, and may be required to implement specified practice management measures.

Premiums

  • The premiums for entry into the ARP and for run-off cover are calculated in accordance with the formula set out in Appendix 2 to the Solicitors' Indemnity Insurance Rules, and are based on a firm's gross fees.
  • In certain circumstances (for example, where a firm fails to apply within the time period in the rules), a default premium 20 per cent higher than the normal premium will be payable for the whole of the indemnity period in question.

Protecting the public

In keeping with our duty to safeguard the interests of the public, the ARP will cover claims against firms which do not secure cover in accordance with the rules. The ARP manager will recover the costs of any claims from the principals of the firm concerned.

Current ARP contract

Contract of Assigned Risks Pool Insurance 2009 (PDF 186K): Assigned Risks Pool Policy for the 2009/2010 Indemnity year.

Previous ARP contracts

ARP contact details

All enquiries relating to the assigned risk pool should be directed to the SRA's appointed ARP Manager.

ARP Manager
Capita Commercial Insurance Services Ltd
Address
40 Dukes Place
London
EC3A 7NH
Telephone
0870 402 7788
Email
ARP@capita.co.uk

ARP proposal form

You can download a proposal form (in PDF or DOC format) to apply for admission to the assigned risks pool:

For administrative purposes, please contact the ARP prior to returning a completed proposal form to them.