There was no evidence of insurer discrimination towards black and minority ethnic (BME) law firms at the 2010 renewal, according to a report by the Law Society.

A like for like comparison in the survey of BME and non-BME small firms found no significant differences in outcomes or premiums paid, suggesting that any difficulty in the renewal process experienced by BME firms were likely to be related to the size of those firms rather than the ethnicity of the firm.

Insurers have come under fire for alleged racial discrimination against BME law firms in the past.

The Professional Indemnity Insurance Survey: Renewals 2010 also found that more firms had difficulty renewing their solicitors' professional indemnity in 2010 than in 2009, and more reported rising premiums.

The survey revealed that 63.5% reported no renewal difficulties in 2010, compared to 79% in 2009, while 69.3% experienced a premium increase in 2010, compared to 62% in 2009.

Law Society chief executive Desmond Hudson has written to the Financial Services Authority, Association of British Insurers and the Equality and Human Rights Commission stressing the need to keep pushing for a more open and transparent renewals process.

Hudson said: “It is encouraging to see that the survey findings showed only 4.4 per cent of BME firms felt that their ethnicity had an impact on the premium they paid and that the size of a firm, its claims history and in-year changes to the number of fee earners have the biggest effect the firms’ PII premium.

“The Law Society, EHRC and others including the SRA have worked together to attempt to ensure that any potential for any form of discrimination is removed. The ABI and the FSA have also undertaken some work in this area. However, collectively, we must continue to work ensure insurers continue to move towards a PII process that is transparent and that risk factors are properly understood by firms."

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