The Solicitors Indemnity Fund (SIF) has reported an accumulated surplus of £54.5m.
The news comes almost five years after SIF was put into run-off, following the discovery of a significant shortfall in the fund. Since 1 September 2000, law firms have had to buy professional indemnity insurance on the open market, creating a fall in premiums.
SIF chairman Paul Marsh said that a reinsurance programme, known as an Adverse Loss Development Programme, is shortly to be put in place to cover any future adverse development to SIF’s book of business.
Once this is finalised, some of SIF’s surplus will be released back to the Law Society.
The fund currently oversees claims dating from before the run-off date, as well as the Assigned Risks Pool for those firms which cannot find insurance on the open market.