SRA warnings 'indicate hardening market' - Professional Indemnity for Solicitors

5/06/2008

The Professional Indemnity (PI) market for solicitors could be set to harden in light of warnings from the Solicitors' Regulation Authority (SRA), it has been claimed.

Writing for Legal-Watchman, PYV Director Marc Riches notes that the number of complaints received by the SRA regarding mortgage fraud rose from 85 in 2004 to 293 in 2007.

This could result in a harder PI market for solicitors who advise on such products, he predicts.

"We might witness a greater number of PI claims develop from solicitors given the current difficulties in the housing market," he tells Legal-Watchman.

The assertion comes alongside warnings from the SRA that mortgage fraud is less likely to go unnoticed when house prices are falling than when they are rising.

Mr Riches continues that, should mortgage fraud cases become more prevalent, "a consequential hardening in solicitors' PI rates may be expected to follow".

His comments follow advice from risk management service Legal Risk, which recently recommended early renewal of PI cover for solicitors facing "troubled times".


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) 2008 Adfero Ltd.

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