By Legal Futures Associate Miller Insurance
Reports of insurers exiting the solicitors PII market understandably give rise to concern – particularly when they emerge just before the main renewal season. Recent profile given to a Browne Jacobson/International Underwriting Association survey suggested that 38% of the insurers that participated in their survey had considered exiting the solicitor’s insurance market entirely.
Miller are experts in arranging cover for the legal sector and we have a long history of working with both SRA and CLC firms. Participating insurers provide an unusually high level of protection for firms and their clients, and there is no doubt that insurers take this into account when deciding their market appetite and pricing. It is also true that insurers continue to see increasing numbers of high value claims.
For CLC firms, one insurer withdrew as a Participating insurer ahead of the common renewal date of 30 June but a recent update from the Council of Licenced Conveyancing highlights that all firms were able to find suitable alternatives. This will have included those firms we helped through our own exclusive relationship with Chubb, a committed and longstanding PII insurer.
For the majority of SRA firms, we believe that the forthcoming renewal will in fact be easier than recent years.
Following a period of a significantly more difficult (‘harder’) market for UK solicitors, during which the range of insurers in the market shrank and premiums rose across the board, Miller continues to see signs of an easing of these conditions – with new entrants to the market, and increased competition for good risks.
For SRA regulated firms Miller works closely with a wide range of A-rated insurers, who are well-established in the solicitors PI market. Our conversations with them continue to indicate a commitment to the market – and with our leverage, we believe we are well placed to negotiate the best deals for our clients.
We do not expect the current softer market to benefit all firms equally. Firms with high-risk profiles and deterioration in their claims experience are less likely to see rate reductions. However, certain insurers have relaxed their underwriting criteria to allow them to consider firms outside of appetite provided the claims history is good and risk mitigation controls are evident. In particular, firms that cannot evidence meaningful risk controls in key areas (such as onboarding, supervision, cyber and fraud risks) or are financially exposed, are likely to find the renewal process more difficult.
Regardless of your firm’s situation, it pays to engage with your broker early. For more information about preparing your renewal submission, read our Top Tips for Renewal – or speak to one of our specialist team. We can help you prepare for your renewal and introduce you to the most suitable insurers for your size and work profile.
