Another Insurer pulls out of the Solicitors Professional Indemnity Market

Aspen the New York quoted international insurance company has today added to the woes of the solicitors’ renewal season.  It has confirmed to Insurance Age that it will not accept renewals or write new business in this market.
It is reported that a spokesperson for the insurer said to Insurance Age “The details are that Aspen is not currently writing any primary solicitor in England or Wales whether new or what would have been renewals.”
“The reasons for this are past claims experience, anticipated rates and mandated terms and conditions.”
Insurance Age also notes that Chartis has declined to write new business and the newer entrant Elite has declined to enter the sector this year.
Whilst Aspen wrote less than 5% of the total market capacity the lack of appetite for insurers to work on the SRA standard terms must be of concern to all practitioners.
An SRA spokesperson said: "Every year insurers change their commercial approach — some expanding, others contracting and new entrants joining. This year is no different and we remain confident that there is sufficient capacity in the market for 2011/12."
Insurance Times noted Aspen wrote £1.15m of solicitors’ PI business last year, with 0.5% of the market share. The insurer entered the solicitors’ PI market in 2008, when it wrote £2.26m of business with a 1% market share.
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