The SRA have announced today that, following a lengthy consultation, they will not be introducing a minimum financial strength rating requirement for participating insurers in the Professional Indemnity market, at this stage.
Elite CEO, Jason Smart, said “I am delighted that common sense has prevailed. As the SRA have themselves alluded to, a financial rating is not in itself an accurate measure of an insurer’s solvency. Introducing a mandatory financial strength rating for insurers in this market will have resulted in a crisis for small to medium size law firms who largely insure with unrated carriers”.
Now with some of the uncertainty removed for many law firms, insurers like Elite can look forward to planning the 2014 renewal season.
As for the further consultation into the Minimum Terms also announced by the SRA, this should prove interesting, but Smart chooses to remain tight lipped on this matter, for the time being.