Insurers and brokers agree that the proposed changes to PII mooted by the SRA in their recent consultation, are unlikely to reduce premiums to any significant degree for the vast majority of firms - according to an article in the Law Gazette today.

Calum MacLean, Risk Manager for Lockton, was quoted as saying that for the firms facing the greatest difficulties in obtaining Professional Indemnity cover or facing the steepest rates (typically those with high conveyancing exposure) 'the reality is that lenders will still determine what insurance is acceptable'. Brian Boehmer, a partner in Lockton's Solicitor team, also interviewed by the Gazette, added that tackling convenancing claims must be the primary goal, if professional indemnity premiums are to be reduced significantly long-term.

The SRA Consultation, and its timing, have certainly created controversy. Legal Risk's Frank Maher has posted his detailed views on the issues raised by the consultation on his firm's website. And the topic was the subject of a detailed meeting of the Association of British Insurers (ABI) earlier this week.

Lockton have expressed concern about the timing of the consultation -given that it closes on 18th June, and its finding will be released in August - bang in the middle of the renewal season. This makes it very difficult for firms - who might be in receipt of early renewal terms, and will in all likelihood significantly delay the provision of confirmed terms for many others, as insurers remain in limbo pending the outcome of the consultation.

As brokers, we advise clients to submit their completed proposal forms at the earliest opportunity. This has traditionally afforded insurers more time to consider the risks properly, and assisted effective broking and underwriting. the prospect of a last minute scramble to the line for even more firms than normal, can only increase the burden of renewal on brokers, insurers and, most importantly, law firms.

To read the Law Gazette article in full, click here.