This year’s professional indemnity insurance (PII) renewals season will be at least as difficult as 2008 and probably worse, the joint Law Society and Solicitors Regulation Authority PII crisis group has concluded.

Premiums will rise because of escalating claims on PII policies – especially from the conveyancing sector – and insurers’ fears that law firms have become riskier businesses, the group warned this week.

However, the single renewal date, 1 October, will remain in place for 2009 despite concerns that it creates a bottleneck in the renewal process. An ongoing consultation between the SRA and Chancery Lane is considering alternatives for 2010.

Meanwhile, the Law Society and the British Insurance Brokers Association (BIBA), the largest representative body for insurance brokers, are contemplating a voluntary PII code of conduct. If implemented, PII brokers signing up will be accredited by the Society.

The PII crisis group convened following 2008’s troubled renewals season, when some firms were forced to close (see [2008] Gazette, 2 October, 1). As the Gazette went to press, 151 firms were in the assigned risks pool, which provides PII for firms unable to find cover with conventional insurers, in return for high premiums.

The Society will today publish a practice note on obtaining optimum insurance terms, including a specimen letter of instruction to brokers. Free seminars will be held across the country to offer practical advice.