I should point out a significant difference between the arrangements for compulsory indemnity insurance for solicitors and those applying to some other professions (see [2008] Gazette, 31 July, 1). The fact that an indemnity insurer has been removed from another profession’s list of preferred providers does not imply that it is liable to be removed from the list of ‘qualifying insurers’ maintained by the Solicitors Regulation Authority (SRA).

To be a qualifying insurer, an insurer must have been authorised by the Financial Services Authority, or another EU authority, to carry out the relevant class of insurance business in the UK and have signed the qualifying insurer’s agreement with the SRA, which binds it into providing insurance that meets our minimum terms and conditions. The SRA does not ‘approve’ or ‘prefer’ any insurer. The regulators of other professions may have different criteria, including the need to meet a certain level of credit rating. The SRA’s view is that the adequacy of the financial strength of an insurer is properly a matter for financial regulators.

It is up to each practice, not the SRA, to decide which qualifying insurer best suits their needs in terms of compulsory professional indemnity insurance.