When solicitors entered the commercial market for primary insurance for the first time in 25 years in September 2000, the timing was perfect. Just as insurers were struggling to fill new business quotas, an entire profession capable of generating well over £200m premium income came into view and their appetite for what might have amounted to an extra 50% professional indemnity premium in the market was obvious. The result for the profession in terms of competition and pricing was a resounding success. Some 30% was wiped off the total cost of the first £1m cover as insurers vied for a share.
As carriers continued to suffer over the next year from the fallout of catastrophic losses, the need for reserve strengthening and the collapse of the stock market, the 2001 renewal for solicitors was remarkably unaffected. The timing, shortly after the collapse of the Independent, but before the World Trade Centre disaster and Enron, was favourable and competition was still fierce.
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