Abolishing the assigned risks pool (ARP) would place solicitors at the ‘whims and fancies’ of the insurance market, a leading solicitor has warned, as the profession voiced concerns over the proposals put forward by the Solicitors Regulation Authority last week.

Sundeep Bhatia, chairman of the Society of Asian Lawyers, said SRA proposals to scrap the ARP from next year’s renewal were ‘dangerous and short-sighted’.

He said: ‘[Without the ARP] we will be at the whims and fancies of the insurance market. If the insurance market makes a choice not to support a particular type of law or firm, then it, rather than the consumer, can determine how legal services are delivered.’

Bhatia added that he was concerned that a move to scrap the ARP could ‘disproportionately affect ethnic minority firms’, which were often sole practitioners and therefore more likely to face problems getting cover.

Cordella Bart-Stewart, chairwoman of the Black Solicitors Network, added that it was a ‘strange time’ to be consulting on abolishing the pool, given well-publicised problems in obtaining insurance.

She said: ‘Six months ago I would have said that, if firms can’t get insurance, they should not be practising. But now, when even firms with a good claims history have had problems getting quotes, the situation is completely different. The SRA consultation does not look at the reasons why firms cannot get cover.’

Janis Purdy, spokeswoman for the Sole Practitioners Group, said abolishing the ARP, which is funded by insurers, could attract more insurers into the market and lower premiums.

‘But if you do abolish it, that will lead to firm closures,’ she said. ‘Given what happened at this year’s renewal, with insurers not giving quotes until late and refusing to insure certain profiles of firm, then maybe next year is too soon to abolish the ARP, particularly as we are likely to face the same problems again next year.’

The SRA published a consultation on the future of the ARP last week, in which it ‘firmly recommended’ that from 2010 firms should no longer be able to enter the ARP.

Law Society president Robert Heslett said that, while there was an ‘urgent need’ to review the ARP, full consideration of respondents’ views must be given before any decision is made.

He said he ‘noted with interest’ SRA chairman Peter Williamson’s ‘stringent views’ on recommending the end of the pool, ‘published on the same day as the consultation was issued’.

An SRA spokesman said the body hopes all interested parties will respond so their views can be taken into account.