Simon Young uncovers the truth behind rumours of increased premiums & unprofessional conduct
Last year saw unusually high levels of concern about the renewal of firms’ professional indemnity insurance policies. Not only were rises in premium levels worrying for some, but also there were rumblings about unprofessional conduct on the part of some brokers, with allegations of offers from insurers being deliberately withheld or delayed. There was concern as to the possibility of insurers themselves becoming insolvent, and worries about shrinkage of the market. There were also un-muted warnings of further increases this year (even before the collapse in the financial markets which means that such forecasts are almost bound to be correct). What then is now emerging as the truth behind those stories, and the prospects for this year?
Bring back SIF?
The main issue for many firms is the level of premiums. There were a number of firms which clearly underwent severe increases, which led to claims that the profession would have been better off had the Solicitors Indemnity Fund (SIF) been retained.
