The Association of British Insurers (ABI) has described proposals from the Solicitors Regulation Authority (SRA) regarding solicitors’ professional indemnity insurance (PII) as “inadequate” and likely to worsen fears for the future of the market.
According to the ABI, the SRA has failed to understand that the Assigned Risks Pool, which is used by solicitors unable to purchase PII, needs to close this year rather than in October 2013, as proposed by the SRA.
The ABI also wants to see a move away from the current “one size fits all” minimum policy terms and conditions to allow policies to be tailored to risk.
The Association’s director of general insurance and health, Nick Starling, says: “Insurers warned the SRA that a failure to make radical change would not only damage the interests of solicitors, but also reduce consumer choice.”
He adds: “Insurers have done their best to deliver competitively-priced insurance, but with stricter capital requirements approaching, we needed more from this review. This is a completely missed opportunity by the SRA.”
Currently, the SRA’s minimum terms and conditions allow solicitors to maintain their insurance even when they have failed to pay premiums.
They also fail to distinguish between different types of law firm, whereas insurers believe the ability to vary policy terms is crucial to maintaining a stable and sustainable market.
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