Solicitors buying professional indemnity insurance are enjoying the softest market for years, with quoted premiums down by up to 20%.
With 90% of firms set to renew on 1 October, industry experts report that unrated insurers have been priced out of the market because their rated competitors are offering similar deals.
‘Many brokers are offering 10%-20% reductions, while a number of insurers have offered early renewal terms,’ said Frank Maher, partner with professional indemnity and compliance solicitors Legal Risk.
Sandra Neilson-Moore, who leads broker Marsh’s lawyer practice, puts the premium cut at a more modest 5%-7%. But she added: ‘It’s all about negotiation. If your premium has gone up, you should be asking questions unless you have had a large claim.’
Colin Taylor, executive director of broker Willis Towers Watson’s PII team, is seeing many 12-month policies renewed at the same rate, subject to caveats that include revenue not having increased beyond a certain threshold.
But he warned: ‘I can’t see premiums getting much cheaper, while there is a long way for them to go up if there is a market issue, interest rates increase or Brexit triggers problems.’