Daily Insurance Industry News
 
 
Daily Insurance Industry News
Tuesday 14th of August 2018
July 20, 2011

Insurers play fair with black and minority ethnic law firms

by Gill Montia

Story link: Insurers play fair with black and minority ethnic law firms

The Law Society has reported that more firms had difficulty renewing their professional indemnity insurance (PII) in 2010 than a year earlier, and more reported an increase in premiums.

The Society’s research reveals that 63.5% reported no renewal difficulties in 2010, compared to a trouble free 79% in 2009, while 69.3% experienced a premium increase, compared to 62% in 2009.

However, no evidence of discrimination by insurers against black and minority ethnic (BME) law firms emerged, and a like-for-like comparison of BME and non-BME small firms found no significant differences in outcomes or premiums paid.

The findings suggest that difficulties in the renewal process experienced by BME firms are likely to be related to the size, rather than the ethnicity, of the firm.

The cost of insuring the legal profession against professional negligence claims has soared in recent years because negligence claims tend to increase during times of economic uncertainty.

In addition, legal firms focused on real estate business have been singled out for specific loadings by some insurer because of expectations that lenders will eventually begin suing some conveyancing firms over mortgage fraud.

 

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