The Law Society today publishes its 2012 PII Buyers’ Guide, which provides detailed guidance to all solicitors in choosing brokers and insurers when renewing their professional indemnity insurance cover. This Guide will be invaluable to solicitors at renewal time.
The 2012 Guide has a particular focus on the relationship between solicitors and the intermediaries they use to help choose the right insurance partner. It explains the level of service solicitors should expect. The Guide also advises solicitors about their rights under FSA rules, which require that brokers reveal any commission they receive, if asked.
Desmond Hudson, Chief Executive of the Law Society commented:
“The FSA created the requirement for brokers to reveal, if asked by their client, commissions and fees that they receive to promote transparency. We are eager to help in that aim and will be providing all our members with the tools required to do this.
“We consider that by requesting this information solicitors will have a better understanding of the relationships between insurers and intermediaries, as different brokers provide different types of services which will necessarily be reflected in their remuneration.
“This is part of the Society’s longstanding campaign to encourage both greater transparency in the PII renewal process and to equip our members to make well informed decision about the use, service standards and the price paid by solicitors for broker service and PII cover.
“We are also aware that, while it may appear to some solicitors that their broker is dealing directly with qualifying insurers, in some instances, the broker forms part of a chain of sub-brokers who access insurers via other brokers. We want to help solicitors to choose an appropriate broker to meet their requirements. Equally, it may help solicitors to see the benefits of continuity in the broker they use.”
As part of the Law Society’s member support initiative, in addition to the Buyers’ Guide, a template letter for solicitors to send to their broker will be placed on the Law Society PII website
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