Solicitors told to resist pressure from insurance companies over GISC status

The Law Society this week urged solicitors not to be bowed by pressure from insurance companies which say they will only work with lawyers who are regulated by the industry watchdog, the General Insurance Standards Council (GISC).

Set up by the insurance sector in a move towards voluntary regulation, GISC is currently inviting applications for membership, with a deadline of 1 September this year.However, the Law Society has applied for registration to be waived for solicitors when insurance forms part of their legal service - for example, policies covering defective title and after-the- event insurance.Solicitors providing general services, including buildings and contents cover, may have to choose between registering with GISC or limiting their activities to introduction only.Alison Crawley, head of professional ethics at the Law Society, said many solicitors are worried by correspondence from insurance companies asking whether they intend to register, with some claiming it is compulsory.

She said solicitors should wait until the Law Society's waiver application is considered by the GISC board next month before making a decision.

'The waiver application, if successful, will at least allow solicitors some choice,' she said.

'Solicitors should still be able to provide full legal services and avoid GISC registration.

But, if they want to operate as insurance brokers, they may have to be subject to the same regulatory system as others.'Paula Rohan