Alternative would allow PI contracts to go into run-off
The assigned risk pool (ARP), for solicitors who have struggled to get professional indemnity (PI) cover on the open market, would be axed under new proposals from the Solicitors Regulation Authority (SRA).
Law firm Beachcroft said it would welcome the proposals. Professional risks partner Mike Willis commented: “Given the historic experience of high-loss ratios – close to 600% on average – and poor recovery of premium associated with firms in the ARP, it is no wonder that some qualifying insurers have questioned whether this is a market in which they wish to continue to operate.”
The SRA is instead proposing to make it easier for struggling solicitors to sell their practices by putting PI insurance contracts into run-off.
Meanwhile, the Irish equivalent of the ARP is also set to be axed next year. The deadline for Irish solicitors to find cover expired yesterday (2 December).
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