Ntegrity the professional insurance broker firms have issued an update on the solicitors’ professional indemnity market and allowed us to reproduce it.
We think you might find it interesting
2010 SOLICITORS’ PROFESSIONAL INDEMNITY UPDATE
13 SEPTEMBER 2010
WHAT’S HAPPENING SO FAR?
It is still early in the campaign but based on our experience and feedback to date:-
– Premium increases are facing most firms.
– The range of increases varies enormously and some seem to defy usual underwriting logic. Firms with a good claims record and risk profile have been receiving price rises of 10% to 20% but equally we are just as regularly seeing premium increases of 50% to 100% or more for attractive risks.
– Smaller firms, particularly with residential conveyancing exposure, and those insured with Quinn are finding that established Insurers are often declining to offer to terms although new Insurer entrants from 2009 are showing interest.
– One major Insurer is effectively withdrawing by increasing premiums by over 100% even for clients whose policies have been profitable.
– Another significant Insurer may close this week as they expect their client retention to be high and have enough new business targeted to fulfil their needs.
– The majority of Insurers continue to re-engineer their portfolios moving away from smaller firms and any with with property exposure.
– Conveyancing and Personal Injury are the main concerns for Insurers. Having more than 20% of total fee income from residential conveyancing is a turn off for most Insurers.
– It is too early to say how the new Insurer entrants in 2010 will fare in terms of competitiveness.
– Several Insurers will not be disappointed to see their portfolio shrink as this will reduce their share of the ARP.
– The Law Society Guide to Insurers updated 2 September exaggerates the options available to firms.
– Mergers are likely to be on the agenda out of necessity for many firms faced with huge premiums.
Options and time may be limited but there are things that can be done and NTEGRITY Professional Indemnity can help you.
We are delighted to report that we are partnering with The 360 Legal Group to offer solutions to solicitors including:-
360 PI Broker
We will discount our usual fee charges by 20% helping to reduce this element of the cost to you.
360 PI Manager
NTEGRITY will review the quotations you receive from all sources before you finally accept and advise on options you may have to improve terms for a fee of £150.
360 PI Emergency Assistance
As the renewal date moves closer we can help firms who may otherwise be facing the Assigned Risks Pool (at starting premiums of 27.5% of fee income).
WHY COME TO NTEGRITY?
– We work for you, not Insurers.
– ARP rescue service that works having recovered firms from it in 2009, and securing over £2m in premium savings.
– Influential specialists in the Professional Indemnity Insurance market for 30 years.
– Proven knowledge.
– Proven solutions.
– In-house integrated claims service to help protect you.
– ‘ETHOS’ our own design claims management system that saves you time and money.