header-logo header-logo

25 April 2013 / Frank Maher
Issue: 7557 / Categories: Opinion , Risk management , Profession , Insurance / reinsurance
printer mail-detail

Avoiding the Balva trap

istock_000022969802xlarge

Was Balva an accident waiting to happen, asks Frank Maher

Balva—a name which will cause trepidation among members of the 1,300 law firms—one in eight of the profession—who insured with them.

There is no suggestion that they are insolvent. But then equally, what reassurance is available? The unaudited fourth quarter accounts for 2012 will not, on their own (if at all), provide that assurance.

As the English section of Balva’s website states: “Activities of Balva have not stayed unnoticed by international professional organisations.” The Financial Conduct Authority register notes: “The Latvian regulator has prohibited this firm from writing any new business in the UK, effective 1 March 2013.” It is not clear when this note was added, but it first appears to have come to the attention of the press around 12 April 2013, a worrying time lapse.

A secure future?

Now, it is entirely possible that the measures taken by the Latvian authorities will secure Balva’s future, but it will require a degree of faith from policyholders to

If you are not a subscriber, subscribe now to read this content
If you are already a subscriber sign in
...or Register for two weeks' free access to subscriber content

MOVERS & SHAKERS

Shakespeare Martineau—David Vaughan

Shakespeare Martineau—David Vaughan

Shakespeare Martineau appoints new London office head as firm continues investment in capital

Browne Jacobson—Kevin Moore

Browne Jacobson—Kevin Moore

Browne Jacobson strengthens All-Island life sciences platform with appointment of leading Galway MedTech lawyer

Clarke Willmott—Latitude Law

Clarke Willmott—Latitude Law

National law firm strengthens commercial offering with acquisition of leading immigration practice

NEWS
Mr Justice Nicklin’s decision to order costs on an indemnity basis may be a ‘significant win’ but it’s still ‘far from game, set and match’ for Associated Newspapers, a former costs judge has said
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
Can a meticulously maintained spreadsheet turn a couple’s informal financial arrangements into legally enforceable obligations? 
back-to-top-scroll