AmTrust swoops to rescue uninsured solicitors

AmTrust has been cited as one of the insurers that has come to the rescue of more than 1,000 solicitors’ firms that found themselves several weeks ago without an insurer with which to renew their professional indemnity insurance (PI).

They were left without new cover after unrated insurers Balva and Berliner pulled out of the market just weeks before the October renewal date.

There are still about 175 firms that are without cover and currently in the extended indemnity period, according to the Solicitors Regulation Authority.

One source estimated that AmTrust could have written up to £30m-worth of premiums in the solicitors’ PI market for this year.

AmTrust was unavailable for comment.

Last year AmTrust only controlled 1% of the market by volume with, but if sources are correct it would mean they have risen significantly to control a substantial chunk of the market.

In 2012–2013 the PI market accounted for £239m of gross written premium (GWP) and the top four insurers that controlled the market by premium share were XL (16.4%), Travelers (10.9%), QBE (10.9%) and Zurich (8.8%).

If the total GWP is the same in 2013 it will give AmTrust a 12.6% market share.

In August, insurer XL said it planned to “significantly” reduce the number of premiums it would write this year.

AmTrust has an exclusive contract with specialist PI broker Howden Windsor for four or more partner firms, while broker JLT has an arrangement to place businesses with one to four partner firms with the insurer.

Howden Windsor said it was a “significant player” in the market, but declined to comment further and JLT was unavailable at the time of publication.