Should there be a single renewal date for solicitors’ professional indemnity insurance?

As the renewals season draws to a close, a growing number of lawyers and some PII brokers are calling for reform.

Solicitors say more flexibility is required because of delayed responses by insurers, short timeframes within which to consider quotes and the need for lower premiums. The argument runs that solicitors would receive better service from the insurance industry if renewals were spread out, and if brokers could offer PII policies that were longer or shorter than a year.

In a recent Law Society online poll, 71% of solicitors backed variable renewal dates, 21% favoured a single date and 8% were unsure. This appears to give Chancery Lane an unambiguous mandate to seek reform – though any changes are ultimately matters for the SRA. Council will determine its policy early next year.

A snap poll of leading insurers by the Gazette suggests they are relaxed about reform. Travelers, AIG, Quinn and RSA, which together control almost half the market, are indifferent, while Zurich and QBE, which have 16% and 15% respectively, said they are in favour.

When the insurers are so sanguine one is entitled to be sceptical. Larger forces are at work here – flexibility would help in some respects, but whether it would reduce premiums must be open to serious doubt.