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Smaller firms bear brunt as insurers raise professional indemnity rates

This year has yet again shown why the PII market needs to change, either back to a SIF model or the introduction of variable renewal dates. The logic behind some of the decisions to reject cover or hike premiums have been astounding; it appears to me as someone who has just negotiated a renewal that it does not matter how good your systems, risk profile, etc, insurers will use their own 'commercial' criteria to try and justify their positions. How can it be right for a sole practitioner who has a clean record to pay £20,000 one year yet this year pay £60,000 without any reasons given? The legal press has recently been full of adverts/articles from consultants and the Law Society saying how they can help you to obtain good rates for cover; how is this so, are they also the Chief Executives of the PI insurance companies, it seems to me that unless they are they have no influence whatsoever? The issue needs to be tackled quickly before more firms go to the wall!

14-Sep-2009

10:14 am