A move to scrap the single renewal date for professional indemnity insurance (PII) in 2010 is ‘improbable,’ the Solicitors Regulation Authority said this week.

The SRA also warned that any shift to staggered renewals ‘will not in itself significantly alter the overall dynamics of the market’.

The news comes a week after the Law Society’s council voted to lobby the SRA to scrap the single renewal date in favour of staggered renewals. Research undertaken for Chancery Lane by consultant actuaries Lane Clark & Peacock concluded that staggered renewals would lead to lower premiums.

However, research undertaken for the SRA by insurance broker Marsh recommended that the single renewal date be retained.

The SRA said that, while it is not reviewing the entire PII regime, it will ‘look into’ the renewal date issue, and will launch a consultation on the assigned risks pool (ARP) in the next two weeks.

A second successive fraught renewal season led to many solicitors, brokers and insurers calling for the single renewal date to be scrapped, while a record number of firms fell into the ARP. There were 308 firms in the ARP as the Gazette went to press.

Andrew Long (pictured), chairman of the SRA’s financial protection committee, said of the renewal date issue: ‘When the SRA looked at the detail of this 18 months ago, the professional advice and practical considerations did not favour a change.

‘However, much has changed since then, including the renewal process becoming more complex, with insurers requiring more detail from firms and asking more follow-up questions.

‘We will look at this again in the light of recent experience, professional advice, forthcoming meetings with insurers and ­brokers, the views of the profession and the imminent consultation on the assigned risks pool.

‘The one note of caution is that a variable renewal date will not in itself significantly alter the overall dynamics of the market.’

An SRA spokesman added that any move away from the single renewal date before next October is ‘improbable because of the work involved’.