Latest Articles / Legal Professions
The Law Society’s latest research, as reported in this Law Gazette article, provides an essential analysis of current trends in the professional indemnity insurance market, particularly beneficial for law firms looking to manage their PII premiums effectively.
Key takeaways include a returning stability and confidence in the market after a challenging hardening period, which doesn’t necessarily predict a decrease in premiums but indicates a more modest rise for most firms. However, small firms still face significant challenges during the renewal process, encountering stringent underwriting requirements and less flexibility overall.
With the median cost of PII cover reaching £16,000 and a median excess of £5,000 on claims, the financial implications are non-trivial, especially for smaller practices, and early engagement in the renewal process is advised to secure favorable terms.
Travelers has emerged as the largest insurer, while a majority of firms still rely on single quotations for their PII renewals, signaling an opportunity to shop around for more competitive rates.
In light of these findings, law firms and solicitor practices would benefit from leveraging the expertise of a specialised broker like Regulated Risks. Here at RR we can provide valuable support throughout the PII renewal process by:
- Analyzing firm-specific needs against market trends to identify the right level of cover.
- Engaging multiple insurers to ensure a competitive premium.
- Assisting with the preparation of renewal documentation to reflect the firm’s risk accurately.
- Advising on strategies to mitigate potential premium increases, such as reassessing risk profiles or considering alternative cover structures.
In a nuanced and evolving PII market, professional guidance from Regulated Risks can be instrumental in navigating the complexities of insurance renewals, ensuring adequate coverage, and optimizing cost-efficiency for law firms across the UK.
Written 23rd January 2024
We work with Legal Firms of all sizes to help them navigate the complex regulatory environment and ensure their compliance.
Book a Discovery Call with us today to discuss your business needs and partner with us for a secure, thriving future.
