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Assigned risks pool

The assigned risks pool (ARP) is for firms that are unable to obtain professional indemnity insurance (PII) in the insurance market. It provides emergency cover for a period of up to two years so that firms can continue to practise with insurance in place.

Entering the ARP

If you're unable to obtain insurance on the open market:

Please contact the ARP Manager as soon as you identify that there may be an issue with renewing your insurance. This will ensure you have sufficient time to arrange ongoing cover if required.

Run-off cover can be provided in the ARP if it's not available in the general insurance market.

30 days emergency cover

If your insurer has declined to provide renewal terms and has not agreed a further extension of cover beyond the Extended Policy Period then an initial short term period of "emergency cover" for up to 30 days is available. This should provide sufficient time for you to contact other insurers and find an alternative provider.

The ARP manager will require your ICAEW membership number (or details of how you are eligible for cover), details of the firm’s gross fee income for the last completed accounting year, evidence of declinatures from the insurance market and a copy of the signed entry agreement before cover can begin. The ARP manager may also request additional information that is required by insurers.

You will have to pay an Initial Deposit Premium before emergency cover is incepted. Insurance cannot be provided if this deposit premium is not paid.

Cost of the ARP

The cost of emergency cover is based on your firm’s gross fee income for the previous accounting year. Details of the calculation are found at paragraph 2.3 of the Agreement for Entry. This calculation is subject to a minimum premium deposit of £1,000 (plus 12% Insurance Premium Tax) but will be higher for firms with a higher fee income. Full details of the cost of cover will be outlined by the ARP Manager and you should be able to make payment electronically.

If you require cover beyond the emergency 30-day period then you will have to pay a further deposit premium. The premium for annual cover is calculated by insurers. There is a deposit which should be paid before annual terms incept, and this is based on fee income. However, the final premium can be adjusted upwards of downwards at the discretion of lead insurers and is based on their assessment of the firm’s circumstances.

Further details will be provided to by the ARP manager regarding the cost of ongoing cover in the ARP, but you should be aware that insurance in the ARP is expensive.

ARP visit process

After your firm has been accepted into the ARP, if appropriate, ICAEW will arrange for a practice review to:

  • help your firm identify the reason(s) why it could not obtain cover;
  • recommend actions to help your firm obtain insurance cover in the open market; and
  • provide insurers with information to assist in assessing the underwriting risk and to set the final premium.

Your firm is required to pay for an ICAEW practice review visit. This is a condition of entry into the ARP.

The visit will be tailored to suit your firm’s specific circumstances. Before the visit takes place, your firm is required to pay the full estimated cost. An adjustment credit note or invoice will be issued at the end of the visit process.

Leaving the ARP

A firm can leave the ARP at any time and, if appropriate, a return of premium is payable. The firm must comply with the PII Regulations and ensure that continuous insurance cover for all of its work is maintained.

Cover in the ARP is available in the ARP for up to two years. At the end of the first year, the firm will be asked to complete a proposal form to obtain cover for a second year and to pay a further premium. Only in very exceptional circumstances is an extension granted for time in the ARP beyond two years. Before the firm leaves the APR at the end of two years, a further review visit (at the firm's expense) may be required.

You should take active steps to obtain insurance in the market place well before the end of the two-year period. It helps to get the services of a broker who is knowledgeable in PII matters.