Solicitors have saved over £32m on professional indemnity premiums in 2006-07 according to provisional figures released last month says Lockton's professions division. Total premiums charged by insurers to the profession this year totalled £211.4m in comparison to the figure of £243.8m for 2005-06 representing a saving of 13%.
The premiums charged to firms have reduced significantly this year due to highly favourable conditions in the global insurance market.
Stephen Holland, executive director, professions, a division of Lockton Companies International says: “The open market in professional indemnity insurance has delivered enormous savings to solicitors, with total premiums this year still well below the total charged by the Solicitors Indemnity Fund in its final year of operation.
However he warned solicitors to “be aware that when rates rise insurers will offer the best terms to those firms with excellent claims records and high standards of risk management. Firms should not be complacent about lower rates but must act to ensure that they have bullet proof risk management procedures so that they can continue to benefit from competitive premiums in future.”
The top five PI insurers to solicitors firms in 2006-07 are Zurich Professional with 21% market share, QBE 16%, St Paul Travelers 13%. Norwich Union 8% and Royal and SunAlliance also with 8% market share.
