Licensed Conveyancers: preparing for PII renewal in a challenging market
It is widely known the insurance market is at its most difficult in terms of pricing and cover and the most challenging we have seen in over 25 years.
Insurers are being forced by shareholders and market regulators into taking dramatic action to reverse years of financial underperformance.
One of the sectors hardest hit has been Professional Indemnity Insurance (PII), with some insurers withdrawing entirely, others imposing punitive increases in premiums and in some areas seeking to restrict the cover offered.
In an attempt to assist conveyancing firms preparing for their PII renewal, here are some pointers to consider in the run up to your renewal.
‘The Ideal Firm’ - the insurers’ perspective
Insurers will want to see that your firm is able to demonstrate:
- A sound financial position;
- Your firm’s activity is limited to property conveyancing and re-mortgage work;
- An acceptable claims record;
- Investment in technology to assist and support risk management;
- Confirmation that during the pandemic staff were able to “work from home“ effectively;
- Your firm has strict controls on the amount of work taken on during the last few months, to prevent staff and systems becoming over-run; and
- Commitment to staff training.
The proposal form
Proposal forms have become longer with additional questions included relating to the impact of Covid-19. Therefore submissions are taking more time to complete so please make sure you give yourself more time than usual to ensure you can include everything you want to.
Individual insurance underwriters are only human, so please make every effort to complete your form giving all the required information as clearly as possible.
We would encourage firms to compile a covering letter, highlighting all the attributes that make you an “Ideal Firm” in order that the insurer gets a picture of the sort of firm you are.
In summary, renewal is going to be a testing time for all concerned, so please consider what you can do in order to give yourselves the best possible chance of an acceptable outcome.
If you would like to discuss any aspect of your PII renewal, please do get in touch.
Edward looks after Howden’s Licensed Conveyancers clients, helping them get the cover they need in a changing market. He is also the Chairman of the PI New Business Forum, which gives him a unique insight into the world of Professional Indemnity. Edward is our man on the inside, offering his clients advice and insights to mitigate their risk and manage their insurance needs.