More than 150 firms are still trying to get professional indemnity insurance (PII) cover a month after the 1 October renewal deadline. Those firms will be prevented from taking on new business and could eventually be closed down if they fail to get cover.
It’s been a challenging year for PII renewals with a massive regime change implemented by the SRA aimed at stabilising the market. The insurers responded by carving up market share and some threatened to pull out altogether, triggering warnings of a rate hike.
Experts warned of higher premiums at the bottom of a divided profession but it will be some time before the true picture is known. As for the 153 firms still on the hunt for cover, the outlook is bleak.
The row over whether firms should be forced to get cover from rated underwriters seems so long ago.
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