Insurance experts are predicting sharp hikes in solicitors’ professional indemnity (PI) rates in the wake of the terrorist attacks on the US, after two of the leading providers last week suffered credit downgrades.

On 20 September, Australian insurer QBE, the third-largest provider of insurance cover to UK solicitors, suspended its shares for two hours after a downgrade of its credit rating from A+ to A by rating agency Standard & Poor’s (S&P).