PII – why a large number of firms will be seeking a new insurer

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By Legal Futures

15 July 2010


Seeking cover: as many as 3,200 firms could be seeking new insurers this year

When the profession ditched the Solicitors Indemnity Fund (SIF), a compelling reason for the move was that many good firms were paying for the failures of the few. Now, a decade later, solicitors are back in exactly the same position. Only, the ‘few’ could become substantially more over the next few months.

‘The assigned risks pool (ARP) is now regarded as the root of all evil,’ says Martin Ellis, head of the solicitors’ practice group at broker Prime Professions. After several years when there were no more than 30 firms in the ARP – the last resort for firms which cannot find cover on the open market – in 2008/9 there were 140, some 259 in 2009/10 and, it is feared, many more joining them this October.

Read the rest of this feature, written by Legal Futures Editor Neil Rose, on the Law Society Gazette website here.

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‘No, minister – CMCs are not the answer to your problem’

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Last month, MPs on the justice select committee asked minister Lord Keen what would happen when the government went ahead with its plan to raise the small claims limit for personal injury claims (from £1,000 to £5,000 for road traffic related claims and to £2,000 for everything else). As it is a jurisdiction in which lawyers do not generally operate – because legal costs are not recoverable – who might help claimants navigate what can still be a complex process? His answer, surprisingly, was claims management companies.

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