Report proposes changes that will 'stop the chaos' of solicitors' PI renewals
A review of the solicitors’ professional indemnity market recommends keeping the much-maligned assigned risks pool (ARP).
The ABI has, however, welcomed the report – commissioned by the Solicitors Regulation Authority (SRA) – because it makes significant changes in favour of insurers.
The report, by Charles River Associates, was released last week and there will be a consultation in December.
It recommends that firms in the ARP should be given cover on an individual basis, proposes scrapping the current date for PI renewals, and recommends the immediate closure of firms in the ARP that do not pay for their insurance cover.
Assistant director of markets and regulation at the ABI Kate Carr said the report “clearly highlights the value of a competitive market for solicitors’ indemnity insurance”.
Professional risks director at Clear Insurance Management Daniel Innes said: “Scrapping the common renewal date will stop the chaos that ensues with everyone running around trying to get everything done to a deadline. This report can’t hurt.”
Divisional director of UIB Simon Lovat said: “I think it is a positive step and it makes many valid points, but it still seems to want the insurance industry to police the profession, which is not what the insurance industry is here to do.”