It is important to inform you of a recent development within the PII marketplace. Much has been reported about the prevailing insurance market conditions and the impact that claims activity experienced by the Legal Profession has had on insurers. Another influencing factor to the insurance market conditions that has not been as widely reported, and one we wanted to share with you, is the fact that many of the Participating insurers have been lobbying the SRA to make changes to certain provisions that are contained within the Minimum Terms and Conditions (MTC) wording that set by the SRA.
The International Underwriters Association (IUA) is the body that represents many of the current participating insurers and on behalf of its members it has been in engaging with the SRA requesting change to the MTC. The two key aspects of change relate to payment; The payment of excesses when they are due, following a claim, and the payment of run-off premiums in order for Insurers to provide the coverage for this.
The SRA refused to make the requested amendments and the MTC remains unchanged for the time being, the lack of change has materially impacted on some Insurers appetite for the current PII Renewal season and beyond. In response to this The IUA have issued an Open Letter to the Legal Profession of England and Wales.
Please download the PDF version of the IUA Open letter. Should you wish to discuss this further, please do not hesitate to contact your Lockton representative.