A break in the clouds
Two years ago the insurance industry entered its most serious downturn in a decade in the wake of 11 September, pushing solicitors' professional indemnity premiums into orbit. Elizabeth Mullins looks at what law firms can expect of this years renewal rates
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.
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