One after-the-event insurer and legal expenses provider has changed its mind recently by announcing it will enter the professional indemnity insurance market in 2012.
Elite Insurance stated in June 2010 that it had decided against entering the professional liability insurance market, citing a lack of crucial reforms to the rules governing policy wording and the assigned risks pool. However, Elite’s chief executive, Jason Smart, has now remarked that market conditions have changed sufficiently for the firm to enter into the business liability insurance sector.
Elite Insurance has grown to a point where it is beginning the recruitment process for a specialist professional indemnity insurance provider and has begun to present to reinsurers, Mr Smart said. The chief executive remarked that Elite is keen to enter the professional liability insurance market, despite the fact that the ARP has yet to have made any changes.
Mr Smart said that Elite’s previous concerns of last year in regard to the lack of any finalisation of changes to the pool had been allayed, now that the insurer now knows what changes will be implemented. Elite will be approaching the marketplace through its existing solicitor relationships as an after-the-event insurance provider, according to the chief executive, as Elite has 2,500 solicitors that it has worked with through the past few years.
The new underwriting process for Elite will consist of two stages, as it calls upon its ATE insurance experience to examine legal firm operations as well as its in-house specialist professional indemnity insurance underwriter.