Professional Indemnity figures released

Professional Indemnity figures released

The SRA has revealed that insurers have underwritten nearly £240 million of business for solicitors in England and Wales.

Following the renewal deadline of the end of September figures for the 2012/13 Professional Indemnity Insurance year have been collated.

The largest share of the market has been taken by XL Insurance Ltd with 16.5 per cent of the total business underwritten.

Second are Travelers Insurance and QBE International with 10.9 per cent.

This is the last year marks the last in which the SRA will operate the Assigned Risks Pool (ARP) for those firms that cannot secure insurance on the open market.

This "insurer of last resort" is being stopped as part of a raft of measures the SRA put in place to further protect clients and increase the competitiveness of the market.

The pool is being phased out, and 2012 is the last year such cover will be in place.

Richard Collins, SRA Executive Director for Policy, said: "It was clear that to ensure the long-term sustainability of the PII arrangements one of our biggest challenges would be to address the ARP.

“Doing this was complex, but we believe the arrangements offer the best way of ensuring client protection through a competitive insurance market.”

In October 2013, the ARP will be replaced with a system where insurers offer a three-month extended policy to firms which cannot obtain PII for the following year.

A firm may continue to practise while attempting to obtain a policy for the first 30 days of this extended indemnity period.

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