SRA to launch eight-week consultation next month
The Solicitors Regulation Authority (SRA) board has agreed to go ahead with a consultation into whether all solicitors’ professional indemnity (PI) insurers should be rated B or better.
The consultation will start in early February and will last for eight weeks.
The move has been prompted by the findings of a review that concluded the protection offered by unrated insurers and rated insurers may not be the same – even though the policy wording is.
The solicitors’ regulator commissioned Marsh to determine if clients of law firms enjoyed the same protections regardless of the rating of the insurer.
The SRA is proposing that all PI insurers have at least a B financial rating before being added to the participating insurers’ list of PI providers that can offer cover to solicitors.
Solicitors must have PI insurance to practise in the UK. At present, an insurer must be authorised by the Prudential Regulation Authority or be a passported EU insurer to be included on the SRA’s list of participating insurers.