The Solicitors Regulation Authority has visited 88 firms in the assigned risks pool (ARP) since July, as part of its tougher enforcement strategy to clamp down on ‘financially unstable’ firms in the pool.

The regulator announced a new enforcement regime in July designed to address the problem of unpaid ARP premiums. Firms that do not pay their premiums will face expulsion from the pool and be forced to cease trading.

The latest figures show that there are currently 214 firms in the ARP, of which 94 still have some outstanding premiums.

However, the enforcement action has led to an increase in the amount of premium paid. The number of firms in the first year of the ARP that have paid their premium has risen from 71 to 77 since July, with payment arrangements in place with a further eight firms. Five ARP firms have ceased trading, while two new firms have entered the pool.

The SRA has visited 88 firms and referred five of these to its forensic investigations unit for a more detailed visit after ‘serious concerns’ were identified.

Some insurers have said that the high cost of the ARP has deterred them from offering professional indemnity insurance (PII) business to new clients this renewal. The ARP, and therefore the cost of unpaid premiums, is funded by insurers in proportion to their share of the solicitors’ PII market.