JLT Specialty has launched a Buyers’ Guide to Solicitors’ PI. The five step guide covers risk assessment criteria, the insurance supply chain and the impact of business planning on premiums. The guide also sets the purchasing process within the context of broader market conditions.

“With the delayed effects of the 2008 financial crisis, we are likely to see a ‘flight to quality,’ as underwriters seek to re-address the balance of their solicitors’ PII portfolios. This is a change of strategy from underwriting for market share to underwriting for higher profit margins,” says Mike Perry, partner, JLT Specialty . “In these times of relative uncertainty, the need for greater clarity and a sense of where quality can be found for the consumer has been a long time coming.”

“For too long, smaller practices have been under-provided by the market. A lack of choice combined with a challenging and cumbersome application process and a broad brush approach to risk profiling make it difficult for firms to differentiate themselves and secure the best possible PI terms.

“With the Buyers’ Guide we’re lifting the lid on PI; explaining how firms are assessed and the factors that impact on premiums. In particular we focus on the insurance rating and purchasing model, which for too long has been shrouded in mystery. We discuss the broking chain and the influence of sub-broking on premiums – a practice currently in the spotlight with The Law Society’s call for greater transparency from PI providers.

Perry adds: “It’s clear from our discussions with the market over the last 12 months that much of the frustration from smaller firms lies in the lack of efficiency and communication from providers. Choice of insurer naturally depends on cost, but quality and service are equally important; PI insurance represents a high proportion of gross fee income and confidence in both provider and cover are vital.”

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