Proctor : June 2017
24 PROCTOR | June 2017 Rates have now reduced in each of the last three years. Lexon’s chairman during this key period, Glenn Ferguson AM, sees this as a validation of the company’s strategic direction. Following the announcement of the new rates he said: “The Board has focused on providing tangible benefits to the profession and has a long-term commitment to delivering an exceptional insurance product at the best possible price. We could not do that without the profession actively embracing Lexon’s risk management message nor without the continuing support of the QLS Council.” With rates now at their lowest levels since the introduction of the current levy model in 2007/8, the reduced cost of doing business should assist all insured practices in this challenging business environment. Of course, the current low levels of claims also improve consumer confidence in the profession and reduce the overall emotional toll on practitioners from claim events. The long-term exceptional claims performance in the criminal law area will also be recognised in 2017/18 with a further 20% base levy discount applying to any insured practice which derives at least 90% of its GFI from that area. After the successful launch of our top-up product last year, Lexon and QLS are again offering QLS members the additional comfort of professional indemnity cover beyond the existing $2 million per claim provided to all insured practitioners. This option is available On 28 April 2017 Queensland Law Society president Christine Smyth announced a 20% reduction in the 2017/18 base levy rates for the vast bulk of law practices insured with Lexon. 1 Your risk management success again delivers rate reductions of up to 20% Lexon Insurance Pte Ltd ARBN 098 964 740 Incorporated in Singapore Registration No: 200104171C at very competitive rates with practitioners having the choice of increasing cover to either $5 million or $10 million per claim. Pricing was provided in your renewal pack sent by QLS. If you are interested in either of these options, please contact the Lexon team. Areas of law practised in Queensland The graphic below depicts the comparative size of the areas of law (by GFI) practised by Lexon insureds over the period 2013 to 2016. Personal injuries work remains the largest area of activity – consistently at or about 19%. Some interesting trends are starting to emerge in other areas, such as residential conveyancing, which has been growing strongly year on year. Wills and estates also continues to grow – a trend we do not expect to change in the medium term. The proportionate decline in litigation and other commercial law (that is, corporate, sale and purchase of business, insolvency and trusts) since 2013 perhaps reflects the current sedate business environment. I am always interested in receiving feedback, so if you have any issues or concerns, please feel free to drop me a line at firstname.lastname@example.org. Michael Young CEO The comparative size of practice areas from 2013 to 2016 ResidentialConveyancingMortgages&SecuritiesOtherPropertyRelatedTransactionsCommercialConveyancingOtherCommercialLawFamilyLawPersonalInjuriesLitigationWills&EstatesCriminalLawTaxOther4.93%12.02%13.54%1.97%4.70%10.63%19.18%14.48%7.51%4.57%0.84%5.64%12.86%2.01%4.41%4.84%13.99%11.25%19.04%15.09%7.20%3.83%0.85%4.64%12.41%1.94%5.23%4.59%13.68%11.44%19.37%15.44%6.90%3.75%0.99%4.27%11.70%1.80%5.80%4.60%14.60%11.60%18.50%16.10%6.80%3.40%0.90%4.30% 5% 10% 15% 20% 25% 2016 2015 2014 2013 1 Base levy rates have been reduced by 20% for each of Bands 2 through 9.