PII market remains steady despite Brexit uncertainty
Research has indicated that the majority of firms experienced a smooth renewal of their Professional Indemnity Insurance (PII).
According to the Law Society’s 2016-17 Survey, this is the third consecutive year that most solicitors surveyed had a smooth transition when they were renewing PII, something which Joe Egan stated remained unaffected by Brexit.
The president of the Law Society mentioned that any uncertainty stemming from the UK’s departure from the European Union has had little to no impact on solicitors’ PII, with the average premium falling slightly.
“This continued market stability is good news for both clients and the profession, so it’s well worth shopping around for a good deal; surprisingly few firms do at the moment.”
Despite Brexit appearing to have little impact, attention has been drawn to other issues raised in the survey, namely the minimal awareness around the closure of the Solicitors’ Indemnity Fund (SIF).
As highlighted by Egan, this could be a significant issue for any firms planning to shut down, given the need to account for extending run-off cover.
Another key issue highlighted was the increase in reports of scammers, fraud attacks and phishing attempts over the past year.
Egan commented on the heightened need for firms to update risk management, drawing on how it would both protect and benefit them on a long-term basis.
“It is vital firms keep their risk management up to date – particularly in relation to scams – if they wish to continue to benefit from lower PII premiums.
“Some insurers now ask about the measures firms have taken to protect against scams, including their security and IT systems. The Law Society provides training and resources to help solicitors prevent scams and keep up to date on this important issue.”