THE LIABILITY CRISIS CAUSES AND CURES

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THE LIABILITY CRISIS - CAUSES AND CURES

• STEPHEN H BAMFORTH
• Managing Director
• Griffiths Armour Professional Risks

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A look back to January

• GAs report to ACE UK Council
• deteriorating claims experience
• why?

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A Summary of our findings

• deep lying causes
• need for ACE to be proactive

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Aims

• improve risk profile generally
• improve claims experience
• long term trends

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Key Factors

• profile
• fee levels

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The consequences

• profile deficit equals income deficit
• dampener on salary levels
• good graduates go elsewhere
• reduced training, supervision and innovation
• reduced quality equals more claims
• loss of position in the food chain

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Resulting In..

• a vicious downward cycle

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A growing skills shortage

• a need for clients to invest

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Some solutions?

• increased fees
• dialogue with clients
• contractual risk management
• business risk management

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THE LIABILITY CRISIS - CAUSES AND CURES

• STEPHEN H BAMFORTH
• Managing Director
• Griffiths Armour Professional Risks