On 1 September 2002, more firms than ever are set to enter the assigned risks pool (ARP), after insurers predicted that many solicitors will have failed to renew their indemnity insurance policies.
Michael Rendell, director of broker PYV, estimated that his company’s renewal data suggested that 40% of solicitors’ firms would fail to renew their policies before the cut-off date this year.
He said: “They [solicitors] are later in renewing than in previous years. Part of the problem is that many insurers quote to firms at the beginning of August when many partners go on holiday.”
Jonathan Davies, of insurer St Paul, said that hundreds of firms have not yet arranged cover. He warned that if they are forced to enter the ARP, they will be liable for a punitive default premium, adding that it would then be harder for them to find insurance.
Mr Rendell said that the average premium rise so far was 25%.
PLS News 30/08/02
