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PI insurers warn of 25 per cent rate hike

Changing 1st October renewal dates is the answer The legal profession is the only profession were everybody renews their insurance on the same date. The reason is that it allows The Law Society to make sure that everybody has cover. But it could work in the opposite direction. If you haven't got enough policyholders when it comes to 1st October you can change your underwriting criteria to lower prices. In the insurance world it is known as 'chasing volume'- that means chasing policyholders. They need to do this to meet the budget which has been set, after 1st October there is no time left to make up the number of policyholders before the year end. This is something which the Law Society needs to assess. The 1st October renewal date is not good for anyone. Solicitors leave it to the last minute and some people take advantage of that, which drives rates downwards on an elastic band which is about to snap.

29-Oct-2007

4:13 pm