Many law firms still lacking PI insurance for coming new period

As the 1 October renewal deadline looms for the legal profession, industry experts say that many law firms are still lacking professional indemnity insurance cover for the coming new period.

Despite this, the Law Society has recently suggested that the rough economic waters of recent years seem to be settling down, a view which the Solicitors’ Regulation Authority supports through research figures that found the rate of entry into the Assigned Risks Pool is slowing, even though the number of firms finding themselves in the professional liability insurance provider of last resort has risen higher than ever.  The ARP has been rightly dominating the headlines throughout 2011, yet its inevitable contraction following a review by the SRA will aid in creating a more stable environment for business liability insurance providers as the changes slated for 2012-13 draw closer, industry experts say.

While the market is still finding itself lingering hard, a number of insurance providers find themselves more content with their business books, stating that their premium rates are a more accurate representation of the risks they actually hold.  An additional piece of good news is that a significant number of insurance providers have recently entered the market, which will aid in balancing against those insurers that have exited as of late.

The arrival of these new insurers also aids in softening the blow from Quinn Insurance exiting the professional indemnity insurance market last year, as its departure forced nearly 3,000 firms in the UK to look for new insurers.

New entrants into the professional indemnity insurance marketplace include firms such as Enterprise Insurance Services, Apro Management, and First Title.

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