Indemnity insurance
Insurance industry “shaping the law firm M&A agenda”, say experts
Professional indemnity insurers are starting to shape the UK legal sector as they exert their influence during law firm mergers and acquisitions, experts have warned. Their attitude towards a firm’s target is becoming a significant influence on who buys whom – and who doesn’t.
Indemnity insurer collapse leaves millions in unpaid claims against solicitors
Lemma, the failed Gibraltar-based solicitors’ indemnity insurer, has left run-off claims worth around £25m to be borne by the financial services industry in the wake of its collapse last year, it has emerged.
Law Society tight-lipped over reports of plan to launch own PII scheme for solicitors
The Law Society has refused to comment on speculation that it is to launch its own professional indemnity insurance offering for law firms. Legal Futures understands that it has been examining a managing general agency model.
SRA finally starts to give way on unrated insurers
The Solicitors Regulation Authority has finally given ground over unrated insurers and is to investigate again whether it should introduce financial eligibility criteria. The regulator has launched an assessment of the “full implications” of such a move.
1,300 law firms face emergency hunt for new indemnity insurer
The 1,300 law firms who have their professional indemnity insurance with Balva face the prospect of having four weeks to find new cover if the winding-up process the Latvian company started yesterday becomes an “insolvency event”, the Solicitors Regulation Authority has warned.
Consumer panel calls for radical reform of financial protection arrangements
A single scheme joining up professional indemnity insurance and compensation funds across the whole legal services market – including unregulated providers – should be actively explored, the Legal Services Consumer Panel has recommended.
High Court backs solicitors in mortgage fraud case
The defence protecting honest solicitors duped by mortgage fraudsters that was erected by the Court of Appeal last year has been reinforced by the High Court. A law firm can be relieved of consequential liability for a breach of trust if it acts honestly and reasonably.
Row over unrated insurers erupts after SRA bids to calm Balva worries
The Solicitors Regulation Authority is holding firm against criticism over its position on unrated professional indemnity insurers after Latvian underwriter Balva – which covers 1,300 law firms – was prohibited from writing new UK business.
Indemnity premiums fell last year but Law Society warns firms over unrated insurers
Two-thirds of law firms saw their professional indemnity insurance premiums go down last year, with switching insurers the most common way of securing it, Law Society figures have revealed. The society has also warned that under-pressure small firms are risking their future by going with unrated providers.
Growing through mergers? Beware the block negligence claim, warns leading PII adviser
Last year was 12 months of unprecedented merger activity in the legal market. Experts are predicting that the trend will continue in 2013 with more mergers as firms seek to stay competitive by increasing their geographic spread or achieve shared critical mass in the marketplace.
Clients reject notion of lower legal fees in return for reduced consumer protection
Consumers believe regulators ensure they have protections when buying legal services – although they don’t really know what they are – and are content to pay extra for them, a survey of users’ perceptions has found. But they also expect lawyers to provide better information about their rights.
Insurer wrong to reject law firm's blanket notification of possible claims, High Court rules
A professional indemnity insurer was wrong to reject a law firm’s blanket notification of possible claims, the High Court has decided in what is believed to be the first ruling of its kind. Meanwhile, the Law Society has issued a warning to solicitors to check potential insurers’ credit ratings.
New indemnity insurers capture market share as solicitors pay less for their cover this year
Greater competition for business has led to a small fall in the amount of money solicitors paid for their basic professional indemnity cover this year, figures from the Solicitors Regulation Authority show. New entrants captured more than 10% of the market.
Relief for solicitors’ wallets as small number of firms apply to enter ARP
The number of applications from law firms to enter the assigned risks pool in its last year is back to pre-crisis levels, the Solicitors Regulation Authority has reported. This year the profession is liable to pay the first £10m in claims that arise from the pool.
SRA ‘unsure’ whether to act on complaints of loss-leader pricing by law firms
Complaints from competitors that a law firm is engaging in predatory pricing are difficult to deal with, the Solicitors Regulation Authority admitted last week. At the same time, regulators were urged to make it easier for firms to inform them about what other practices in their area were up to.