PI insurance firm announces wind down in England & Wales

One professional indemnity mutual insurance company specialising in more than £1 million in coverage to Welsh and English firms recently announced it will no longer be taking on new business going forward.

Mutual insurance firm, Solicitors’ Indemnity Mutual Insurance Association, recently announced the decision following a meeting this past March.  Initially established more than two decades ago, SIMIA consisted of a group of 39 solicitors’ professional liability insurance firms that banded together to prevent under-capacity in the market and reduce insurance costs.

The business liability insurance provider released a statement in conjunction with the announcement that remarked that it will be liquidated and dissolved after being removed from the FSA Register.  Any surplus will be distributed to SIMIA members in accordance with provisions outlined in its Articles of Association, as the industry body is a mutual, stated the firm.

The announcement went on to say that the decision of SIMIA’s Board to be placed into run-off after a cease in accepting new business has been ratified by the association.  Members who have to renew their commercial insurance policies between today and 1 October of this year will be unable to do so with SIMIA, the statement also said, and any members whose policies need to be renewed on that October date will be unable to renew their existing policies with the mutual association.

SIMIA stated that it would be difficult to provide a prediction on how long it will take to properly deal with the liabilities of the association due to the sometimes lengthy nature of claims development timetables.  The association added that consideration will be given by the SIMIA board to the possible purchasing of additional reinsurance protection policies in order to either minimise or eliminate the risk of further supplementary calls.

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