Professional indemnity (PI) rates are set to fall by up to 20% as the October 1st renewal deadline draws near, according to a survey.
A survey of solicitors firms across the UK, by independent Lloyd's broker PYV, also found that nearly 89% of firms have not renewed their compulsory PI insurance. But 40% say that when they do they expect to pay up to 20% less for their premium than they did last year.
The research showed that 41% of legal practices who have bought their PI cover this year have paid up to 20% less than last year. The same percentage has not changed their insurance broker in the last four years.
Of those firms who expect to see a hike in their PI premium, a quarter believe it is because they will be paying for other firms' claims and not their own.
Nick Pointon, Director of PYV Limited said: “I am shocked that so many firms stay with their brokers for so long, solicitors firms need to be shopping around every year to make sure they get the best deal ahead of the 1st October deadline.”
He added a drop in rates is largely due to the increased competition within the market place.
