A new report released by the Professional Standards Councils shows that professional standards schemes help improve risk management in the professions, which is to the benefit of Australian consumers, scheme participants and insurers.
The Councils commissioned consulting actuaries Taylor Fry to examine and evidence the benefits delivered by professional standards schemes.
Using three case studies – The Law Society of NSW, Chartered Accountants Australia and New Zealand, and Australian Property Institute Valuers – the report focused on the effects of schemes on professional indemnity insurance and professional negligence claims, and consumer complaints. Favourable trends in the quantum and volume of notifications, insurance claims and complaints against participants of professional standards schemes, with consequent improvements in the cost and availability of professional indemnity insurance, were all linked to the successful operation of professional standards schemes.
The Councils encourage all professional associations and insurers to use the report in working together to continuously improve standards and better protect consumers – the benefits are tangible and significant. As risks are reduced, so too are costs, consumer harms and complaints.