This year's professional indemnity market is more sophisticated than either Zurich or Howden state (see [2004] Gazette, 2 September, 1; and 9 September, 15) and as a result we're expecting there to be more winners than losers at renewal.


The big difference that the 'new underwriters' have brought to the market, aside from increased capacity, is a willingness to challenge the assumptions of the past and consider risks that used to be difficult or expensive to place.



For example, specialist firms that worked in areas which were generally regarded as high risk, such as personal injury, used to have a very limited choice of insurer. The new underwriters have clearly realised that some of these practices offer very attractive propositions and are focusing on them ahead of more generalist firms. The result is that up to five underwriters may be willing to quote on risks where previously the choice may have been restricted to one.



It's not only the insurers who are taking a more sophisticated approach. Law firms too have matured in their understanding of the open insurance market and have realised the value of committing serious time and effort in presenting themselves to the market.



The difference is marked. A couple of years ago many firms would treat a professional indemnity proposal as a box-ticking exercise, whereas now they have realised that they can save their practices a great deal of money by explaining their answers clearly and in detail.



Let us hope that this increasing maturity in the solicitors professional indemnity market continues in future years as it is to the clear advantage of both legal practices and their insurers to have a wide, well resourced, efficiently functioning market.



Trevor Moss, Executive Director, Alexander Forbes Professions, London