The Legal Services Board has issued a notice to the SRA to provide further information to support the proposed reduction in the limit of indemnity and to further extend the time the LSB has to consider the changes to 17 August 2015.

The SRA has confirmed that this means that not only will the Indemnity Insurance rules NOT change for the 1st October renewal (firms will still require to take out a minimum £2m/£3m cover) but also, the proposed requirement for firms to assess and have in place 'appropriate' cover, will not be introduced pending the LSB decision.

Lockton, along with many other commentators, had serious reservations regarding the proposed changes to PII that the SRA had proposed, and the short timescale in which the proposals were being pushed through.  There is no doubt that insurers and law firms can take comfort from the delay, in that the renewal process, which had been somewhat held-up by the uncertainty of the outcome of the LSB deliberations, should be able to proceeed as normal.

Firms who have not already returned their  completed proposal forms should do so now.   Late submissions can lead to terms not being offered by some insurers, or less good terms being offered than might have been earlier, when insurers had more time to review submissions in detail.