12th May 2003
Zurich Professional, the number one provider of professional indemnity insurance for firms of solicitors in England & Wales, currently insuring 1 in 3 firms, feels there is no benefit in the proposed renewal date change to 1st October in 2004 for either firms of solicitors or the general public.
This proposed change, in many cases, will add more pressure on already financially stretched solicitor firms. Firms will have to find an additional 8% of premium for the extra month of cover this year which when combined with rapidly increasing professional indemnity rates in the market will lead to an increased strain on their budgets.
The Law Society’s practising certificate renewal process will also be impacted. Reducing from two months to one month the period of time to validate insurance cover prior to issuing a practising certificate will cause more disorder. Firms in 2004 may not have received their policy documents in time to allow them to apply for the renewal of their practising certificate. The practising certificate renewal process is already stretched and reducing this time period will cause additional pressure on this process.
David Coughlan, Head of Zurich Professional said; "This proposed change will create additional strain on firms’ budgets. Our experience has been that well organised firms are properly prepared and have no problems under the current system. The proposed change has no benefit to the legal profession and puts extra financial pressure on firms at a time when professional indemnity rates are still hardening."
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Notes to the editors:
Zurich Professional Limited (www.zurich.co.uk/professional), a member of the Zurich Financial Services Group, is a dedicated business, servicing the professional indemnity insurance market for solicitors in England and Wales and accountants and other miscellaneous professions in the UK. Launched in May 2000 in the solicitors market Zurich Professional currently insures 1 in 3 firms of solicitors in the market.
Zurich Financial Services (www.zurich.com) is an insurance-based financial services provider with an international network that focuses its activities on its key markets of North America, the United Kingdom and Continental Europe. Founded in 1872, Zurich is headquartered in Zurich, Switzerland. It has offices in approximately 60 countries and employs about 68,000 people.
