Solicitors

When solicitors’ professional indemnity insurance returned to the open market in 2000, QBE positioned itself as a major insurer in this field. The size and diversity of the portfolio necessitated the development of sophisticated underwriting systems and claims management resources. In addition, a unique quality assurance-based approach to risk management was developed for clients of all sizes, democratising a service that has commonly been the preserve of larger organisations.

Our primary quality assurance-based risk management (QARM) service for solicitors, either insured or seeking insurance under our PI schemes, is the self-assessment process. This uses a questionnaire to:

• Compare the performance of practices within their peer group
• Form the basis of an effective risk management process
• Provide underwriters with a detailed overview of our clients and their respective current management standards in order to make informed underwriting decisions when tailoring coverage

The self-assessment process is completed in 2 simple steps.

Step One – complete the questionnaire, available for download from the Solicitors section of the Documentation Library, by using either the MS Excel or, where available, the printed versions. The questionnaire consists of two completion options:

• Standard Form - a basic set of questions representing high risk operational factors (completion time approximately 90 minutes)
• Comprehensive Form - a comprehensive questions set that provides an analysis of all operational factors covered by the Lexcel Standard and best practice principles drawn from other standards including Investors in People and ISO9001 (completion time approximately 210 minutes)

Returned questionnaires are analysed by us to prepare a report that includes prioritised action points. The report is delivered in hard copy, with additional information available on this website. Participating firms benefit from an impartial review of their business and administrative practices. Furthermore the Partner / Solicitor completing the questionnaire process will earn valuable CPD points as this process is recognised by the Solicitors Regulation Authority as a distance learning tool.

Step Two - review the written report. A detailed checklist will assist you in addressing issues that might require attention – a feedback process enables you to submit changes that you implement as a result of this process to us for re-evaluation. We will then issue an updated report that includes our course reference number for inclusion in your CPD log. The points awarded are:

• Standard Form and feedback process – 3 hours
• Comprehensive Form and feedback process – 6 hours

The QARM process is completely free of charge – a health check against the Lexcel standard could cost as much as £3,000 from an independent consultant.

In addition to the questionnaire described above, a Risk Management Essentials Questionnaire (RMEQ), designed to establish basic core management information, is available for our Sole Practitioner clients.

Will completing the questionnaire process help with visits from the Practice Standards Unit (PSU)? The scope of a typical PSU visit includes:

1) The new Solicitors' Code of Conduct

2) The Solicitors' Accounts Rules

3) Financial Services Rules (Scope and Conduct of Business)

4) Review of any complaints and claims

The questionnaire was updated in September 2007 to take account of the requirements and guidance within the new Code so there are major overlaps between the questionnaire and items 1 and 4 and to a lesser extent, items 2 and 3. Addressing any recommendations relating to these areas will therefore help to demonstrate to the PSU that you have adequate controls in place.

What about the new Code of Conduct? The new Code places greater emphasis on business operations including supervision, management and risk management arrangements. This means that these issues are now to be dealt with as a matter of professional practice and could result in disciplinary proceedings if found to be lacking. Use of the comprehensive questionnaire can help with compliance with the Code of Conduct in several ways:

1) Using it as your risk assessment tool will demonstrate a systematic and holistic approach to risk assessment has been adopted as recommended in the guidance to the risk management requirement of Practice Rule 5

2) Implementation of recommendations in accordance with their priorities will demonstrate a systematic and risk-based approach to addressing “arrangements for the effective management of the firm as whole”, as required by Practice Rule 5.01

3) Annual review of your risk profile using the questionnaire will demonstrate that a regular review mechanism of risks and controls is in place, again as recommended in the guidance to the risk management requirements

In addition to the questionnaire based QARM process, a variety of support services are available.

Risk Management Essentials (RME) assistance pack – this service has been designed for sole practitioners and very small firms and is intended to assist clients implement management systems that are considered to be high priority in controlling exposure to professional indemnity claims. It encompasses precedent forms, checklists and letters that can be used to establish a consistency of approach by all advisors on all cases. Once RME practices are well established, the firm could further improve its risk management controls by progressing to our Core Management System. The RME pack is available for download from the Quality Assurance Documentation Library and is completely free.

Core Management System (CMS) assistance pack – this has been designed for multi-partner firms and is intended to assist clients implement controls considered to be high and medium priority in controlling exposure to professional indemnity claims. CMS documents include a Manual of policies and procedures, precedent forms, checklists and letters. It can be used as a stepping stone towards a recognised quality standard such as Lexcel but additional work will be needed to address low PI risk elements and other business risks that are not addressed in the CMS pack. Very small practices with little in the way of management systems might benefit from introducing the RME package prior to CMS. The CMS pack is available for download from the Quality Assurance Documentation Library and is completely free (NB: Each document from either the RME or CMS packs must be individually reviewed and adapted to suit the firm's own circumstances).

The following on-site & bespoke services described attract consultancy fees, although under certain circumstances this fee may be subsidised by underwriters.

CMS Implementation Services – this was developed to provide clients with a ‘no-frills’ package designed to install the key management systems required to control risk. CMS benefits from being quick and thereby cost effective to implement.

Site Audit – this provides a more in-depth investigation than is capable through the self-assessment process. Site audits involve examination of a complete cross-section of the firm’s files in detail and all practice management policies and procedures. Particular emphasis is placed on reviewing complaints and claims histories and the measures instigated to prevent recurrence of the problems encountered. To prepare for a site audit, please download our Solicitors Pre-Audit Checklist from the Documentation Library.

Quality Standards Implementation Service – this is applicable to organisations of all types and sizes utilising both generic QA standards (e.g. ISO 9001) and industry specific standards (e.g. Lexcel and Specialist Quality Mark). The process includes assistance with documentation, implementation, training, and preparation for third party assessment.

Training Services – focussing on risk management, quality assurance and management systems, our training packages can be delivered as public courses or to individual practices whereby the emphasis can be tailored to suit particular risk management issues within the firm.

Bespoke Consultancy Services – are available to clients with unique requirements for which a service can be specially developed. Such services may draw on our Risk Management, QA, IT and analytical expertise.