One of the most consistent concerns I hear from member firms isn’t about regulation, recruitment, or referral fees, it’s about PI insurance.
Oddly, it’s the sort of subject that’s rarely discussed openly in forums or events, and yet when you mention it, you quickly find out it’s top of mind for many. That’s particularly the case at this time of year, when renewals start arriving and firms brace themselves for the figures.
Recently, a CA member got in touch to share their experience of this. They had been quoted such a high renewal premium they were seriously considering whether it was viable to continue operating.
This, I should point out, is a successful, claims-free firm, and yet their PI quote had rocketed to a level that felt completely disconnected from their actual risk profile. When they queried it, they were told they had been offered an ‘early bird’ special rate, which again was met with incredulity on the firm owner’s part.
But after several weeks of pushing back, asking for revised terms, alternative excesses, and speaking with other brokers, they secured a quote that was not only tens of thousands of pounds cheaper than their original renewal, but also cheaper than the previous year, despite the firm’s turnover having doubled. Go figure on that one.
This, I’m afraid, is not an isolated story either. What’s become increasingly clear is that PI insurance can often operate in a surprisingly opaque marketplace. The process of securing PI cover is time-consuming and often frustrating, and it’s understandable that many firms default to simply accepting their renewal. Not because they think it’s good value, but because they don’t have the time or appetite to challenge it.
And when quotes are often shared close to the deadline for renewal, the pressure to avoid a gap in cover means many firms are making decisions under duress. But the reality is that shopping around can make an enormous difference.
In this most recent case, had the firm not questioned the figures or explored alternatives, they could have ended up paying close to double what they actually needed to. It raises a number of important questions about how premiums are calculated and how much competition there really is in the market
PI insurance is a major cost burden for conveyancers, and in some cases, one of the largest single expenses on the balance sheet. In a market already dealing with cost inflation, fee pressure, heightened responsibilities and increasing regulation, rising PI premiums add another layer of challenge.
So why are we seeing such disparity in quotes? Some of it may be down to perception of risk, particularly in conveyancing, where fraud remains a major concern for insurers.
But we also know that many firms are investing heavily in technology and process improvements, including digital ID verification, Qualified Electronic Signatures, secure onboarding, and end-to-end case management, which should be reducing risk, and therefore cost.
Insurers themselves have certainly talked about how these innovations could bring premiums down in the long term, but for many firms, those savings are yet to materialise. It’s little comfort to know that a digital dividend might be coming in future when your PI bill is due now.
At the Conveyancing Association, we’re increasingly focused on this issue, not just because of the financial implications for members, but because of the stress and uncertainty it creates.
We’re looking at ways we can help, whether that’s through raising awareness, sharing anonymised examples to highlight the scale of the problem, or engaging with brokers like Howden to better understand what conveyancers can do to make themselves more attractive to the insurance market.
One area we’re particularly interested in is whether a more standardised approach to the renewal process could reduce the administrative burden and increase competition? If every firm is filling out a different form for every broker, it’s no wonder the process feels painful, and that in itself also feels like a barrier to shopping around.
Of course, some will say that this is simply the way of the market, that brokers operate in a competitive environment and that firms have a choice. And that’s true. But it only works if firms feel empowered and equipped to exercise that choice. If they’re worn down by admin, worried about missing a deadline, or unsure where to turn, then the system isn’t working as it should. No one is asking for artificially low premiums or preferential treatment, just for fairness, clarity, and consistency.
My advice to all firms right now is simple: don’t accept your renewal without question. It might feel like a hassle, but the financial benefit of shopping around could be the difference between investing in growth or just surviving.
And if you’ve had a particularly difficult experience this year – whether positive or negative – let us know. The more we understand the shape of the market, the better we can advocate for transparency and reform. Because until PI insurance starts reflecting the true efforts of firms to reduce risk, shopping around isn’t just smart, it’s absolutely essential.
Beth Rudolf is Director of Delivery at the Conveyancing Association (CA)
