Released on: December 1, 2007, 1:23 am

Press Release Author: Alexandra Lewis

Industry:

Press Release Summary: Less than half of solicitors (46%) are prioritising risk
management despite Rule 5 coming into effect on 1 July which demands effective
management of the firm. Aon, the UK's leading insurance broker and risk management
consultant, is now urging law firms to shift risk to the top of the agenda to adhere
to Rule 5's requirements and avoid possible sanctions by the Solicitors Regulation
Authority (SRA).

Press Release Body: Less than half of solicitors (46%) are prioritising risk
management despite Rule 5 coming into effect on 1 July which demands effective
management of the firm. Aon, the UK's leading insurance broker and risk management
consultant, is now urging law firms to shift risk to the top of the agenda to adhere
to Rule 5's requirements and avoid possible sanctions by the Solicitors Regulation
Authority (SRA).

When questioned on motivation to buy insurance at renewal, price - unsurprisingly -
came top but risk management advice only ranked fourth, according to an Aon survey.
Top drivers affecting decision to purchase

1. price 78%
2. claims handled by a qualified solicitor 71%
3. broker speed of response 62%
4. risk management service 46%
5. capped excess 45%

However, the new Rule 5, which is part of the Solicitors\' Code of Conduct 2007,
demands more focus on risk management through the effective management of the firm,
including plans on how to continue business in the event of absences and emergencies
with the minimum interruption to clients\' businesses. The method of delivery is up
to the firm but practices will be expected to produce evidence that a systematic and
effective risk management approach is in operation and that there are regular
reviews of its effectiveness.

Failure to adopt Rule 5 could ultimately lead to sanctions by the SRA and, in
extreme circumstances, the Solicitors' Disciplinary Tribunal.

Patrick Hearn, director at Aon's professional services group, said: "Some firms have
embraced Quality Assurance through the Law Society\'s own Lexcel standard, ISO 9001,
Investors in People or the Legal Services Commission's Quality Mark for publicly
funded work. Others have not recognised Quality Assurance as necessary for their
business but this has to change. Rule 5 demands that law firms look at their client
and business related risks. Therefore, leading up to the annual professional
indemnity renewals, firms must consider how insurance can be supported with risk
management advice to conform to the new Code of Conduct."entertainment
and media liability insurance


Law firms must now ask themselves:

1. can we produce evidence of systematic and effective risk management arrangements?
2. can we show that these arrangements are regularly reviewed?
3. should we commit to an external quality standard or participate in a Quality
Assurance exercise to assess our current status and identify the risks?
4. how will we comply with the requirement to check with reasonable regularity,
the quality of work undertaken for clients - do we have agreed processes and
responsibilities for this?

Aon UK is ranked by A.M. Best as the number one global insurance brokerage based on
brokerage revenues and voted best insurance intermediary, offering classic car
insurance, high
value home contents insurance, entertainment and media insurance and
construction site insurance.


Web Site: http://www.privateclients.aon.co.uk/privateclients/microsites/household/

Contact Details: directory@vandelay.co.uk