Solicitors’ PI Insurance
For the first time in years, the solicitors’ professional indemnity insurance (PII) market is in a state of unpredictability. Solicitors are entering a period of uncertainty in the run up to the traditional renewal date of 1st December.
For the last few years the solicitors’ market has been generally stable and, subject to claims experience, most firms have found premiums to be similar year on year. That position is changing. There is clear evidence that the soft market is starting to harden.
Since 2014, the market has been relatively stable, with steady insurance capacity fuelling highly competitive rates set against an increasingly benign claims landscape.
Following a £2 billion loss last year, Lloyd’s has recently launched a strategic review of all aspects of its business. Lloyd’s intends to review the bottom 10% performing lines and has challenged syndicates which write PII to reconsider their business plans to ensure future profitability.
These issues, coupled with insurers appetite leads us to believe that 2018 renewal could be problematic.
- Consider a specialist PII broker, with access to the market and a strong claims team – which will help with presentation of the risk, as well as of claims.
- Spend time on your presentation, making sure that any claims issues are presented in a way that makes it clear you have addressed the issue and the problem is unlikely to repeat itself. Risk management is key.
- Do not leave submitting your proposal form until the last minute.