The solicitors’ professional indemnity insurance (PII) market is currently buoyant, with significant competition among insurers providing brokers with the ability to secure favorable terms for medium to large-sized law firm clients. The market has evolved significantly over the past 20 years, with a shift from transaction size and practice area to a focus on understanding an insured’s claim profile and risk management. Law firms and insurers now prioritize establishing a meaningful long-term relationship and valuing culture within a law firm.
The recent renewal cycle saw fierce competition and aggressive pricing, but there was less movement between insurers compared to previous cycles. Law firms are placing greater value on an insurer’s claims proposition and quality of advice and service. Insurers will continue to expect law firms to articulate their use of artificial intelligence (AI) and employee well-being strategies. The importance of culture is now a prominent feature of the PII renewal process, with insurers seeking to understand a law firm’s culture as a comprehensive concept that encompasses all aspects of the organization.
Overall, the market has reached a level of maturity that will result in greater consistency from incumbent insurers, and the welcome competitive tension shows no sign of abating.