Transfer problems in professional indemnity insurance market
Hundreds of law firms seeking to renew their professional indemnity insurance (PII) have been dealt a second blow, after German insurer Berliner Versicherung indicated it may not be able to offer cover after all. In June, Latvian insurer Balva went out of business, affecting about 1,300 firms. Most of these firms had expected to transfer to Berliner, but Apro Management, brokers for Berliner, has now said it may not be able to offer cover for the year starting in October 2013.
Simon Lovat, PII specialist at brokers UIB, said insurance fees may rise as a result for those still looking for cover: “The potential for about 1,100 practices coming into the market to buy PI insurance so soon before renewal, pose a significant challenge to brokers and insurers, who are already working at near capacity.”
