Professional indemnity Insurance renewals increase by factor of four

Professional indemnity insurance broker Aon recently reported that it has been inundated by almost four times the usual number of solicitor proposals this year than it was in 2009.

Solicitors firms had been anticipating the possibility of a very real shortage in regards to the availability of business liability insurance, stated the insurance broker.  This led to a serious uptick in proposals this year as the renewal date, October 1, loomed on the horizon.

Aon also found that the higher level of proposals was consistently higher throughout the remainder of the season, as it experienced its proposal form submission rate was higher by nearly 200 per cent than last year’s.  Aon holds an approximate 40 per cent market share in its specialty, which is in providing sole practitioners with professional liability insurance.

Aon Risk Solutions’ executive director of national professions, Andrew Gough, released a statement in conjunction with the news.  He stated that since there was so much concern in the legal community regarding the insurance market’s status, Aon had decided to work closely with the profession in the lead up to the professional indemnity insurance renewal date.

Aon worked both through Insurance Matters, a Law Society publication, and also through more local law societies, in order to spread the word that submitting proposal forms earlier can not only positively effect the likelihood of obtaining cover but also on negotiating a competitive premium, added Mr Gough.

Additionally the executive director said that Aon knows that law firms that actively engage in risk management techniques typically have better claims records than those that neglect to do so.

Aon Corporation, which has its headquarters in the American city of Chicago, is one of the leading providers of insurance, reinsurance brokerage, risk management services, and management and human capital consultation services.

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