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SRA propose professional indemnity insurance change

JLTFrom Legal Futures’ Associate JLT [1] .

The Solicitors Regulation Authority (SRA) has instigated another consultation regarding proposed changes to the profession’s professional indemnity insurance (PII) requirements and compensation scheme.

This was released on the SRA website on Friday 23 March 2018 and follows an earlier consultation which was rejected by the Legal Services Board [2] in 2014. This consultation closes on the 15 June 2018.

This consultation’s key proposals include:

To the compensation fund:

This consultation has been much anticipated, after a rather difficult and contentious ‘false start’ the last time around.

This is a critical first step towards addressing some important issues on the future of the PII market for Solicitors in England and Wales. All stakeholders, whether they be; brokers, insurers, firms or their clients – will no doubt be focused on playing their part to ensure a practical, sensible and satisfactory way forward for the profession.

With change there is often resistance, and the debate which lies ahead is an essential part of this process.

It is imperative that the SRA takes all of the myriad stakeholders across the profession on the journey of reform. Critically, the decisions ahead must be informed not just by emotional arguments or tradition, but hard data and insight.

The significant troves of claims data which now exists must play a central role in assessing the realistic implications of the proposed changes.

As one of the leaders in the field of solicitors’ PII (currently representing the interests of well over 1,000 law firms) we will, in due course, provide our thoughts on the potentially significant impact on the profession’s protection should these recommendations be implemented.

For more information contact Martin Ellis, Head of UK Professions and Legal Practices Group on +44 20 7528 4704 or email martin_ellis@jltgroup.com [3].

This blog was originally compiled for the benefit of clients and prospective clients of companies of the JLT group of companies (“JLT”) and published on jlt.com. It is not legal advice and is intended only to highlight general issues relating to its subject matter; it does not necessarily deal with every aspect of the topic. Views and opinions expressed in this document are those of JLT unless specifically stated otherwise. Whilst every effort has been made to ensure the accuracy of the content of this document, no JLT entity accepts any responsibility for any error, or omission or deficiency. If you intend to take any action or make any decision on the basis of the content of this document, you should first seek specific professional advice. The information contained within this article may not be reproduced and nothing herein shall be construed as conferring to you by implication or otherwise any licence or right to use any JLT intellectual property.