Indemnity claims handled by Latvian insurer Balva are set to be delayed until a new claims handler can be found.
The Solicitors Regulation Authority said it has been advised that Clear Claims Solutions is no longer handling claims on behalf of Balva.
With immediate effect, any Balva claims enquiries and notifications should be made direct to the firm. Law firms have been sent an address, email account and Riga telephone number to try to contact Balva.
In June, the Financial and Capital Market Commission (FCMC) withdrew all operating licences issued to Balva and a liquidator was appointed to start winding-up proceedings.
The SRA said its current understanding is the liquidator is preparing a report for submission to the FCMC and that Balva remains solvent.
Around 1,300 law firms signed up with Balva in 2012 – many of them on two-year deals – for indemnity insurance. Balva customers were set to transfer to Berliner after the FCMC decision in June, only for Berliner to subsequently withdraw from the market.
The majority of firms affected found insurance before the renewal deadline on 1 October, with 185 firms forced to enter the new extended indemnity period (EIP) scheme. Of those 10 found an insurer within a week.