The SRA’s strategy to manage the Assigned Risks Pool (ARP) more effectively is showing results, with firms paying up over £3/4 million of outstanding premiums and 47 firms either closed or in the process of closing.

The SRA report that the number of firms who have made applications to the ARP this year is fewer than last year. They state that there were 418 applications to 7 October 2010, compared to 428 at the same time last year and that of these, 22 had found insurance cover on the open market since 1 October.

SRA Chief Operating Officer Mike Jeacock said:

“In August we launched an enforcement strategy for firms in the ARP. All firms have received visits and advice, and action is being taken against those posing an unacceptable risk or failing to pay their premiums.”

“Our strategy is proving a success – since August we have collected over £750,000 of outstanding premiums, 37 firms have closed and a further 10 are in the process of closing. We are monitoring these closely.”

This approach will continue for 2010/11. The SRA is already identifying for early investigation all firms that have entered the 2010/11 ARP that pose a high regulatory risk. All firms in the pool will receive visits from the SRA and there will be an immediate focus on the prompt payment of premiums.