New insurer to enter PII market
Friday 23 July 2010 by Rachel Rothwell
A new insurer is to enter the solicitors’ professional indemnity market focusing on firms of up to five partners, the Law Society revealed today.
Vision Underwriting Limited, a wholly owned subsidiary of Liberty Mutual Insurance Europe Limited (LMIE), which is a member of US Group Liberty Mutual Group, will be trading both on a direct basis, and online under the title Legal and Professional Insurance .
The insurer has also signed a deal with the Law Society to take over Solicitors Indemnity Fund (SIF) run-off claims. These have been transferred to Vision from Legal & Professional Claims Ltd, which was previously handling the run-off cover.
SIF run-off claims are expected to take another ten years to complete, on a declining basis. SIF was the profession’s own professional indemnity provider until it was abolished in favour of an open market for insurers in 2000. The run-off work comprises claims against solicitors which relate to the time when SIF provided the PII cover.
The current LPClaims staff of eight will transfer to Vision to continue handling the run-off work.
Paul Kurgo, LMIE’s managing director, commercial business UK and Ireland, said: ‘This is an exciting opportunity for Vision as it enters a sector of the solicitors’ market currently experiencing a growing concern about the availability of a competitive market place.
‘I am also pleased that we have been able to secure a professional and highly experienced claims team that has been recognised for the quality of its management of solicitors claims, developed over many years.
‘We aim to build upon this reputation with firms knowing that their claims are in the right hands’.
Law Society chief executive Desmond Hudson said: ‘The Law Society has secured an excellent result for the profession, which secures the viability of the handling of SIF run-off claims at a reasonable cost and at a time when we are working hard to keep to a minimum the overheads on solicitors.
‘I am delighted that we have been able to reach agreement with Vision Underwriting Limited and that I am also able to welcome the arrival of another insurer for solicitors.’
Comments
new p.i.i insurer
it's good business for liberty mutual. they've near enough 3000 clients who will be knocking on their doors. this group would have found it difficult and/or more expensive to insure themselves next year. many will find liberty preventing them tipping over into the a.r.p. i suspect the premiums will be much more expensive than they realise, though considerably less than the costs of tumbling headlong into the a.r.p.
Not a panacea
So L&P / Vision will have 3000 (Quinn) lawyers knocking on their door - do you think they will have the resources to properly consider and quote all 3000 risks (most of which were underpriced)?
A new insurer is not a panacea. Liberty already have 0.5% of the Qualifying Insurer market for 2009, if they were making money on this book wouldn't they re-enter under their better known name? Did the SRA mandate them to announce themselves as a new entrant to save face and as a condition of taking on the run-off of SIF?
knocking on the door
anon,
i only suggested the ex-quinns and others will knock on the door, not that l&p will open it and invite them in for supper. i'm sure they're capable of sending more than a few packing.
Great to hear of new capacity
Great to hear of new capacity in the market for smaller firms and SP's.