Residential conveyancing claims plummet

Negligence claims against solicitors arising from residential conveyancing fell steeply in the first six months following the end of the Solicitors Indemnity Fund, research out this week reveals.It estimates that the percentage of claims notified for residential conveyancing cases for the six months after the SIF's break-up was 19% - this compares to 29% for 1999, the last year for which figures are available.However, claims arising from commercial conveyancing have grown from 9.5% of the total in 1999 to 18%.The new quarterly survey, carried out by insurance broker Alexander Forbes, used figures of claims notified from a cross-section of almost 1,500 law firms insured by eight insurers.Residential conveyancing claims have tumbled since 1995 - the height of actions brought by lenders - when they accounted for 42.5% of all claims.Some 30% of claims made against sole practitioners come from residential conveyancing, compared with 28% of claims against two-to-four partner firms and 17% for five-to-15 partner firms.Meanwhile, indemnity insurer Saturn Professional Risks has announced that it will not underwrite any new firms except for sole practitioners next year.Director Trevor Kirby said premiums were too low across the market and that Saturn would reconsider expanding its market next year if rates then increase.He said rates should increase by 20% and that the market was currently undervalued.Jeremy Fleming