Insurance Times – Insurers forced to foot £16m bill for solicitors’ PI claims
Those ARP loss ratios hurt!
Saxon East’s series of articles following 2009’s solicitors’ PI renewals continues this week, with the news that insurers would like to join hands, form a big circle and beat the Assigned Risks Pool to death. Their patience is clearly at an end according to this article, which talks of pressure being ‘heaped’ upon the Solicitors Regulation Authority to scrap the ARP; presumably because it’s a bit like being forced to pay welfare for chavvy law firms who couldn’t cut the mustard when the revolution came and then quickly scarpered when they heard the premium collectors’ approach. The PI market has been asked to stump up £16m to pay for all those horrible old losses from bad advice and I guess it is annoying having an uninsured minority spoil it for the rest. The insurers haven’t offered much of an alternative though, except for saying sod off to 600% loss ratios so with the lawyers offering a pretty paltry solution – ringfence bad stuff and sell off firms as a going concern (something which happens all the time anyway) – this one could be set to run on and on.