Conveyancing risk management attracted renewed attention during the 2014 professional indemnity insurance renewal season. Firms were looking at how better processes could help them manage transaction risks and demonstrate their approach to insurers.
Originally published on 12 October 2014. Updated in October 2026 to clarify the historical insurance arrangement and add practical guidance and resources. The premium-saving offer described below relates to 2014; its current availability should not be assumed.
What happened during the 2014 insurance season?
Lexsure reported that, in the three months leading up to 1 October 2014, more than 120 firms, including CQS and non-CQS practices, signed up to its conveyancing risk management products.
At the time, I attributed that growth to AmTrust Europe’s announcement linking the use of risk mitigation software to savings on professional indemnity insurance premiums.
The arrangement recognised firms using COMPLETIONmonitor in their conveyancing work. An August 2014 announcement described a £10 saving on the following year’s premium for each qualifying transaction completed using the software.
The 2014 announcement about Howden Windsor, AmTrust and Lexsure records the arrangement. It should be read as a historical announcement, rather than a current quotation or offer.
Why the link between insurance and risk management mattered
The significance extended beyond the potential saving. The arrangement encouraged firms to consider how they could demonstrate risk management through their handling of individual transactions.
A firm may have experienced conveyancers and well-written policies. The practical question is whether its files show that important checks were completed, exceptions were considered and outstanding issues were resolved.
That remains a useful question when preparing information for a broker or insurer. Any premium, discount or underwriting decision must be confirmed with the relevant provider.
For the documented policy framework, see Lexsure’s CQS CPMS Risk Management Policy. Consider how the policy fits your practice’s work, supervision arrangements and procedures for identifying and managing conveyancing risks.
Make conveyancing controls visible in the file
A useful risk management review starts with the evidence a colleague could find when examining a transaction. Consider whether the file records:
- the lender instructions and offer conditions checked for the matter;
- title, lease or search issues requiring further investigation;
- reports to the lender and any responses or consent obtained;
- advice given to the buyer about significant property risks;
- supervision and the reasons for decisions on unusual matters; and
- outstanding completion and post-completion tasks, with responsibility clearly assigned.
A completed checklist is useful when it points to the supporting work. Where a question reveals a problem, the record should explain how that problem was addressed.
For an example of the risks associated with unresolved matters, read our article on premature submission of a certificate of title.
Keep lender instructions under review
The lender’s requirements need to be considered alongside the facts of the transaction. A procedure based on an old instruction can leave a firm working from an assumption that needs checking.
Our November 2014 article on AmTrust-insured firms preparing for CML Handbook amendments illustrates the importance placed on training when lender instructions changed. The events described in that article have passed.
For ongoing monitoring, the LENDERmonitor notification service provides email notifications identifying changes to lender instructions. Firms should confirm the service’s coverage for their work and continue checking the applicable instructions on each matter.
Use historical instructions when reviewing an older transaction
An insurance enquiry, complaint or file review may concern work completed years earlier. In that situation, today’s lender wording may differ from the instructions that applied at the time.
The Lexsure Lender Archive provides access to historical lender requirements. Check the relevant lender, jurisdiction, date and available coverage, then consider the records alongside the mortgage offer, correspondence and original conveyancing file.
Historical instructions can help establish the context of a decision. They do not, by themselves, establish whether a firm complied with its obligations or whether an alleged error caused a loss.
Prepare evidence before the next PII renewal
Use the period before renewal to review how the firm describes and demonstrates its controls. Practical steps include:
- reviewing a sample of completed files for recurring gaps;
- recording what changed following a complaint, claim or near miss;
- checking that staff understand escalation and supervision arrangements;
- identifying recurring post-completion delays and assigning corrective actions; and
- preparing accurate explanations of the systems the firm uses.
Where the firm introduces software or revises a policy, check how it is being used. A description of the product is less informative than an explanation of how it supports the firm’s work and what the review findings show.
How COMPLETIONmonitor supports conveyancing risk management
COMPLETIONmonitor is designed to support supervision and evidence conveyancing risk management and compliance. Its purpose is to help firms make their processes and checks demonstrable.
Consider how it would fit into your practice’s existing supervision, file review and reporting arrangements. The firm’s lawyers must still apply professional judgement to the particular transaction.
Can your files demonstrate your risk controls?
Explore how COMPLETIONmonitor can support conveyancing supervision and help your firm evidence its risk management processes to lenders, CQS, regulators and professional indemnity insurers.
Leave a Reply