Staggered PI renewals, still a prospect for 2010? - Professional Indemnity Insurance for solicitors

13/11/2009

Written by Marc Riches

The proposed introduction of a staggered renewal process for Professional Indemnity (PI) insurance to take place in 2010 has been questioned.

In comments made to the Law Society Gazette, a spokesman for the Solicitors Regulation Authority (SRA) claimed that the scale of the work involved in shifting away from the present single renewal date means it is "improbable" that anything will happen before next October.

However, Andrew Long, chair of the SRA's financial protection committee, points out that with the difficulties many solicitors experienced in gaining cover this year, the authority is set to look into the renewal process.

Furthermore, there will be a consultation on the assigned risks pool in the next two weeks.

"A variable renewal date will not in itself significantly alter the overall dynamics of the market," he suggests.

Such comments come as the Law Society council voted in a favour of replacing the single PI renewal date with a staggered system.

PYV Legal Director Marc Riches commented: "Whichever way the SRA decide to go, they need to do it sooner rather than later as I believe their regulated membership would be very unhappy if this drags on until the next renewal season - potentially increasing difficulties in what looks like to be a very hard market."

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PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2009 Adfero Ltd.

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