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UK: Partnering with solicitors to manage risks and seize opportunities

  • Professional Indemnity Insurance
The Knowledge
30th May 2024
Sharon Glynn and James Graham, managing directors of professional indemnity (PI) at Travelers Europe, review how market challenges impacted the recent PI renewals season for solicitors and how the company helps clients navigate the evolving economic landscape.
  1. You’ve just finished the spring renewals season. How did that go?

We had a positive season. It was business as usual for us as we focussed on retaining risks that enhance the quality of our portfolio. We’re looking to be not simply our clients’ insurer, but also their trusted long-term partner. By collaborating with clients, we understand and protect against their risks so they are in the strongest position to succeed.
  1. What are the primary factors impacting rate and renewal prices at the moment?

Several factors are at play. Corrective actions following the Lloyds Decile 10 review have made the solicitors’ PI market attractive. Increased competition has led to a softening of rate.
Claim notifications have also been increasing, with many developing into paid claims. Social inflation, claim inflation and increasingly complex claims are impacting the bottom line and affecting our view on the adequacy of rates.
Finally, insurance companies, like other commercial entities, face increased costs of doing business. This affects pricing too.
The overall landscape underscores why we seek quality risks and provide the support insureds need to ride out difficult times. We want to help our insureds work from positions of strength so they can better manage risks and take advantage of the opportunities that may surface in this climate.
  1. How do these factors play a role when you conduct horizon scans for solicitors?

We respond to what is happening in the economy, the legal market and the claims environment. Then we choose our risks appropriately and price sustainably. This protects the health of our portfolio and ensures we are in the strongest position to support our insureds.
  1. Going forward, what do you expect from the October renewals market?

The landscape will likely remain largely the same. We expect solicitors will be looking for security, so we plan to offer renewal benefits that provide relief. For example, if insureds renew early, they will be eligible for a better rate, as well as 18-month contracts that can provide some certainty as they navigate challenging times.
  1. How does your expertise help solicitors navigate the challenges of this market?

We are energised by times like these because we can readily see how our dedicated underwriting, risk management and claim support make a critical difference to solicitors’ businesses.  Collaborating with these clients gives us new opportunities to innovate and share learnings. It’s inspiring to help them succeed. We’re excited to be here for the next 23 years and beyond!
The information provided is for general information purposes only, and is not intended as, nor does it constitute, legal or professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information.