Solicitors professional indemnity insurance – state of the market
The 2011 solicitors professional indemnity renewal season commenced with the Qualifying Insurers (the “QI’s”) attempting to harden rates following insurer departures from the Market, and continuing losses in the Assigned Risk Pool (the “ARP”). In the end there were a number of new entrants, and rates did soften due to the emergence of new capacity. The number of firms entering the ARP dropped significantly, and most firms were able to find cover in the open market. Premiums were still high compared to other traditional professions, but the ongoing frequency and severity of claims, the continuing requirement for QI’s to fund ARP losses, and the QI’s inability to cancel cover for misrepresentation or non-disclosure, has led this marketplace to be extremely unattractive to insurers.
In 2012 it is predicted that prices are likely to remain fairly static. There will probably be some downward premium movement for firms with good claims histories, and with reduced conveyancing exposures, but many firms are not likely to see noticeable improvements. The 2011 new entrants are looking to write more business, and compete with the traditional market participants; however, it is looking increasingly likely that one of the major QI’s is about to withdraw from the Market.
It is anticipated that the ARP will be replaced with a new scheme which will be much more favourable to QI’s in 2013. Some Market observers predict that there may be new entrants this year that will look to build market share prior to this occurring, though it is most likely that 2013 will the time when the Market is re-invigorated, and premiums genuinely improve for law firms.
ADF Insurance can arrange solicitors professional indemnity insurance. It is our strategy to only work with local firms to ensure that our clients obtain the service levels that they deserve. Also, being mindful of the high premiums charged for professional indemnity insurance, we arrange cover with both the more established insurers, and the new entrants, so as to ensure that you will obtain the most competitive premiums achievable for your firm. The solicitors Professional indemntiy market can be difficult to navigate, but we can help you and support you through these challenging times.
If you would like to talk to me further about solicitors professional indemnity insurance then please do not hesitate to contact me.