PI Insurance: TAG collapse set to impact on premiums

The number of professional indemnity notifications against personal injury solicitors has rocketed by 60%, insurer Zurich Professional revealed this week - as it warned that further litigation against firms involved with claims management companies could be on the cards.


Andrew Nickels, risk manager for Zurich Professional, said threatened litigation against solicitors in relation to the collapsed claims management company The Accident Group (TAG) would lead to an increase in premiums for personal injury lawyers this year.


He said: 'There appear to be other insurance companies waiting in the wings to take similar action. Personal injury lawyers this year will be under the spotlight because of this potential problem.


'It is not a question of us refusing to quote firms that are involved in the TAG litigation. But it will impact on price across the board, because so many firms have been affected. The majority of personal injury practitioners have some relationship with claims management companies in one way or another.'


Mr Nickels added that firms should ensure they carry out checks on referrals that come from claims management companies that are not owned by solicitors. He said: 'When firms are getting referrals from claims management companies they must make sure these are valid claims.'


Meanwhile, Wynne Edwards, senior partner at City firm Greene Wood & McLean, said he was preparing to launch a claim against solicitors on behalf of claimants who went through the old Claims Direct.


He said: 'We have about six claimants so far but there are potentially quite a few. We are currently waiting for the after-the-event insurers to confirm cover before we make an application for a group litigation order.'