Four new entrants to the market yet prices continue to rise

Solicitors Regulation Authority figures show that solicitors paid £15m more to insurers for professional indemnity insurance this year, the Law society Gazette reports.

The cost of insuring the profession rose from £226m in the 2008/09 indemnity year, to £241m in 2009/10, a rise of 7%.

Four new insurers entered the market this year – XL Insurance, Allianz, Inter Hannover and Lemma. They were paid £41.5m in premiums, taking a 17% market share.

AIG Europe was the biggest, with a 15.2% market share, followed by Travelers Insurance Co with 13.4% and Zurich Professional with 12.8%.