Thousands of law firms were this week still scrabbling around to renew their professional indemnity insurance ahead of the 1 October deadline.

Insurers and brokers estimated that as many as 30% of the 8,500 firms in England and Wales had still to renew with less than a week to go, with some reporting that they were still receiving new proposals.


Firms that fail to renew in time have a further month before being placed in the punitive assigned risks pool for those without insurance. However, premiums are likely to rise after Friday and there is no guarantee that insurers will backdate the cover to 1 October, potentially exposing partners personally. Most insurers and brokers suggested that moving the renewal date back a month this year has had little effect.


Nick Pointon, director of broker PYV, said some - but not all - firms could get a better deal by leaving it late; the practices that may struggle are those that have decided late in the day that they do not like the quote from their existing insurer.


David Coughlan, head of Zurich Professional, said 'the later you leave it, the less choice you have', as some insurers cannot turn around quotes quickly enough.


Both Trevor Moss and Liz Mullins, executive directors of brokers Alexander Forbes Risk Services and Aon respectively, predicted that competition among underwriters would lead to the overall premium pot dropping around 10%.


Jonathan Davies, underwriting manager at the St Paul, said the competition was causing turmoil.


He added: 'Some [underwriters] seem to be pursuing market share at the expense of accuracy. Brokers and firms are finding it hard to judge the accuracy of prices. But claims are not abating and insurers will still have to meet the cost of claims at the end of the day.'