Firms can reduce premiums by implementing strict risk management controls.
RSA has launched a new package with strict risk management measures for solicitors’ professional indemnity, following its decision to stop offering cover to one and two partner firms.
The insurer will offer discounted premiums to solicitor firms that agree to have a risk management consultant discuss their business practices. It will underwrite policies on a bespoke basis, taking risk management into account when deciding on price.
The insurer has withdrawn from offering professional indemnity (PI) to one and two partner firms, which pose a greater risk, because of the current economic downturn. In tough economic times, claims against solicitors tend to rise.
Rates for professional indemnity for solicitors are expected to soar by as much as 20% in this year’s renewal season, which ends in October.
Aaron Devitt, profin director at RSA, said: “Our PI cover allows brokers to be differentiated according to their business practices and will enable us to be more transparent is our costing, according to what the risk assessment consultancy advises.”
He added: “RSA’s PI cover is targeted towards 10 partner plus firms which will be able to implement these strategies and therefore reduce their PI premiums.”
Under the proposition the insurer would offer solicitor firms reduced PI rates if they agree to having a risk management consultancy come in to discuss their business practices. Each firm would then have their PI cover underwritten personally for them taking into account their risk management approach.
RSA conducted over 100 interviews with solicitors and brokers to help redesign and refocus its professional indemnity products. It has made changes to: service, pricing, risk management and claims.
In the event of a claim, RSA promises to provide the claimant with a named contact and to treat client information sensitively. It will also provide a post claim review. The insurer says that in a time of unease within financial markets its PI proposition has been designed to help protect and grow their solicitors’ businesses.