SME Law Firms in England & Wales May See Rise in Professional Indemnity Rates: Marsh

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Some professional indemnity (PI) insurers are applying greater rigor, are being increasingly selective, or are repricing risks, for small and mid-sized law firms in England and Wales, warned Marsh in a market update.

As Oct. 1 approaches – the most common PI insurance renewal date for the sector – Marsh noted that reductions are mainly limited to those SME law firms with very few or no incurred claims, or lower risk areas of work. On the other hand, firms that have claims relating to cyber breaches or identity fraud are more likely to experience premium increases, Marsh added.
Marsh also reported that there are some upward movements in pricing in the over-insurance market, which ensures that law firms are assured above the mandatory levels, although the primary insurance market for PI risks is well-capitalized and competitive.

Gan The wider market uncertainty demands that many insurance companies review business books, adjust their capacities, or withdraw from sectors they think are not high-risk or profitable anymore, kitap says England, Marsh, Michael Morgan, leader of professional responsibility placement.

Sigorta These small and medium-sized law firms, perceived as ın high risk or by insurance companies in the UK and Wales, carry most of the premium increases in the primary insurance market this year, “he added.

John Kunzler, Senior Risk Adviser at Law Office Practice, said: için Small and medium-sized law firms should start the renewal process on time and demonstrate strong risk management processes in order to secure PI insurance reasonably. place. “

Marsh said last month he launched an insurance solution for small and medium-sized law firms in England and Wales to manage PI risks. Marsh said the solution uses analytical and independent performance data to model the individual risk profile of a law firm, and that customers will receive special pricing based on their risk management performance and demand histories.

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