The regulator wants to reduce the minimum PII cover from £2m to £500,000 (and to £1m for conveyancing firms) and believe competition in the legal market will grow and reduce insurance premiums.
The ABI has warned there is no assurance that premiums will come down if the SRA continue with their plans to cut the minimum level of professional indemnity cover. Plus, the ABI’s members have advised that there is a lack of evidence to back up any of the SRA’s main reasons for pushing ahead with their proposals.
The ABI’s criticisms will be a disappointment to the regulator and a further setback, as a reduction in insurance is viewed as one of their key selling points.
Read the full Todays Conveyancer article here