The Solicitors' Regulation Authority (SRA) has scrapped the recently redrafted version of the Qualifying Insurers' Agreement for solicitors' professional indemnity insurance, and is set to issue another version.
The SRA has not yet confirmed the reason for the second redraft. However, a source told Insurance Times that some underwriters had already found a loophole in the first rewritten agreement to underdeclare their assigned risks pool (ARP) contributions for next year.
The first rewrite,published in July, aimed to tackle complaints that some insurers were not paying their fair share of ARP costs.
Some qualifying insurers believed their rivals were under-declaring premiums to avoid paying their fair share of the ARP, and lobbied the SRA to rewrite the agreement to clamp down on the ‘minimisation techniques’.
Marsh UK act as insurance advisors to the SRA.
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