The SRA proposals: will solicitors benefit?
By Mark Carver
Many in the profession and the insurance industry believe the solicitors’ professional indemnity (PI) market is broken, and has been for some time. Many opinions have been expressed as a result of the recent SRA consultation – from frustration over the proposal to prohibit unrated security to optimism that compulsory cover will mean reduced premiums and increased choice.
However, other than soundbites there has been little behind the headlines in the way of evaluation. To gain some insight we must turn to the detail. The consultation addresses the following proposals: reducing the mandatory level of PI cover to £500,000; introducing an aggregate limit on claims; reducing run-off cover to a minimum of three years; and allowing firms to assess the level of cover appropriate for their organisation.
The SRA states that these proposals are designed to ‘ensure that regulation is proportionate and targeted’, and are designed to ‘reduce costs for legal services providers and consumers’…
Click on the link below to read the rest of the Miller briefing.
Briefings from Miller Insurance Services LLP
In the last of his two-part series, Mark Carver shows how the PI proposals will benefit insurers more than firms.
Following his two-part series in June, Mark Carver discusses the impact of the SRA reforms on all firms.