Presidents Address to Members
API Presidents Address to Members
The April 2011 edition of the API E-News delivered an address to API Members from the president Nick McDonald Crowley. To view this address, please play the following embedded media player. Or you may wish to read the transcript at the end of this page.
Transcript
President Nick McDonald Crowley
"Welcome to the first ever API member update to be distributed via web video. For those that are not aware I am 10 months through my 12 month term as National President and I would like to bring you all up to speed with a number of issues affecting the Institute at this time.
The API has spent the past year working hard to benefit our members and this work is paying off. We have seen significant achievements across sectors such as IT, training, education, industry support and Professional Indemnity. Before I discuss the API's progress and accomplishments, I'd like to address concerns about increases to premiums for Professional Indemnity Insurance, or PI. The API is aware that some members have experienced premium increases of between 100%-200%.
I must stress that increases of this size are uncommon, and while it's true that premiums are up on last year, the figure is more commonly around the 30%-50% mark. I urge all members with increases higher than this to contact their broker ask them to explain their premium and breadth of coverage.
Each policy is quoted individually as each individual's circumstances are different. Issues that can affect the cost of your premium include, but are not limited to, your claim history, type of exposure, turnover, type of profession, type of work and/or valuations performed, number of years in the profession, and the limit of indemnity you're after. We also highlight these increases in PI are a reflection of changes in the global market and are not limited solely to Australia. In fact the majority of Insurance cover provided in Australia is sourced from overseas.
The most important thing is that you shouldn't assume that PI is no longer affordable.
It's also important to distinguish the difference between PI and the new Limited Liability Scheme. It is a coincidence that there is discussion around both matters at the same time but they are not related insurance. Getting back to PI, members may be aware that the Coverforce Underwriting Pty Ltd property valuers' binder has expired and hasn't been renewed. Coverforce is working to put a replacement binder in place to fill the gap but members should note that that there are numerous other underwriters operating in the open market.
While not all underwriters will be willing to underwrite every member, cover is available in majority of cases. It's important to select a broker who understands your business, is familiar with the insurance market for valuers and who fully understands the implications of the Capping Legislation.
The API endorses several leading brokers who meet this prerequisite as detailed on our National Member website under {(Business Listings". You can contact the API and we can direct you to a broker who can help you.
I will also draw your attention to one of the new staff members who has joined National office for you r benefit. Betty Warner-Lehmen is our new Professional Indemnity and Compliance manager and she started working for us back in January this year.
Betty has a strong background in Corporate Governance, Insurance and professional work practices. Her primary role is to provide strategic leadership for API{V) Limited, as well as build, promote, oversee and administer the regulatory requirements associated with the new Limited Liability Scheme. The role has a strong focus on member issue management relating to the Scheme and the PI Insurance market as a whole. I would encourage you as members, and particularly any of our new corporate members to engage and benefit from this service that we now provide. Our initial focus will be gauging trends in insurance and collating data in that regard - so that we can approach the regulators with strong statistical evidence on the trend that is currently happening.
No other organisation has the strength and rigour to provide this feedback, and your assistance as members in helping us put this information together is sought and will be appreciated. At this stage we have meetings booked with both ASIC and APRA in early May 2011. I encourage any of you with firsthand experience in this area to engage with Betty in our Melbourne office.
Now, onto the API's successes over the past 12 months. One of the many areas in which we've made huge strides is IT. National IT Manager Joel Leslie has boosted his department's resources and is bringing several IT functions in-house to protect service delivery standards and cap costs.
The new Contact Management System, or CMS, is being relocated to API infrastructure in an attempt to increase business efficiency. This will enable more streamlined delivery of member services Implementation is on track for initial release in April, with additional functionality to be added throughout the year.
The new system has had some hiccups, however we are confident of success, and ultimately a better delivery of service to you our members. I would like to again acknowledge the effort of all of our staff both National and within the Divisions for adhering to the National-'Council's vision on this matter. Continual improvement and scrutiny of the CMS will be one of our key objectives to ensure our goals are achieved. In other IT news, the development of our website is continuing and we're on track to release what will be a superior membership delivery tool that reflects the highly renowned professional image of the API.
The roll out of the website will take place over the next 12 months as new functions are 'bolted on' to the application. Please take the time to look at the functionality of the new applications, and provide feedback to us when appropriate.
The recent floods, cyclones and earthquakes in Australia and New Zealand made for a dramatic start to 2011, with '" I '- I implications for the property industry. The API in conjunction with PINZ is currently reviewing in detail the procedures that should be followed when valuing disaster-affected property. The guidance, when prepared, will need to be applicable across Australia and take into account research of several similar incidents, not -[ necessarily limited to flooding. This guidance will take some time to prepare. In the interim, we have developed advice that might be of assistance for those dealing with property affected by the recent floods. You can visit the March edition of Enews on the API website.
In the area of training and education, next financial year we'll be rolling out the Future Professionals Program. This is an education and training program focusing on areas of high importance such as valuation, sales, leasing, consultancy, property and facilities, management, funds and investment, portfolio and asset management, and property development.
Other areas include professional ethics, standards, conduct and risk management. The program will be delivered on-line and in workshops by API divisions throughout Australia.
That's all for now. You can stay updated with regular' editions of Enews and updates on our new website from April. I am proud of what the Institute has achieved and look forward to the continued success of the organisation and you, the members."
Nick McDonald Crowley
President of the Australian Property Institute