The professional indemnity (PI) market is seeing renewal rates falling by an average of 15% compared with last years' prices, according to Towry Law director of professions Paul Byrne.

On non-solicitor business, rates are falling significantly in what is an increasingly competitive market, said Byrne.

"Since January most people will have seen a significant drop in their premiums," he warned.

"The exact reduction in premiums will depend on whether the policyholder was getting a good deal last year or not, but some people are seeing their premiums halved."

The PI market is an area where policyholders will be prepared to change insurer "for the sake of a few hundred pounds," said Byrne, but the rate changes and the competitive market means "not much business is changing hands".

Solicitors professional indemnity insurance rates are holding firm, partially due to the increase in the minimum indemnity limit required by the Law Society from £1m to £2m, the first change in 16 years.

The Law Society's indemnity insurance committee also changed the rules governing the aggregation of claims, meaning insurers will have a single exposure on mass litigation actions, rather than an exposure for each claim brought as part of a class action.