Beyond professional indemnity insurance - the future of risk management research

'Beyond professional indemnity insurance - the future of risk management' is the latest research report from Howden's Legal Practice Group, working in partnership with The Lawyer - exploring the evolving landscape of risk management in the UK legal industry.

Our report, in collaboration with The Lawyer, underlines the need for legal professionals and law firms to move to a more proactive, multidimensional approach to risk management, moving away from a sole reliance on professional indemnity insurance as the first line of defence. By embracing emerging technologies, prioritising compliance, safeguarding reputations, and fostering collaboration we believe that law firms and their senior leadership teams can better navigate the evolving risk landscape and better protect their interests.

Based on the views and opinions from a range of law firms in The Lawyer UK 200 ranking, the report begins by examining the current coverage that these firms have in place for professional indemnity insurance (PII) and in particular cybersecurity threats - assessing how engaged senior leaders are on this issue and the steps they are taking to protect their firms. The report then continues to delve into various areas of risk, including:

Holistic risk

We examine the importance of adopting a holistic approach to risk assessment, exploring how well law firms are identifying and evaluating risks across various dimensions, including operational and strategic aspects of risk.

Technology and artificial intelligence

The rapid advancement of technology and AI in the legal sector presents both opportunities and risks. We examine how legal professionals are leveraging innovative solutions such as artificial intelligence and the opportunities and challenges this brings.

Compliance and regulation

In an increasingly complex regulatory environment, law firms must stay abreast of evolving requirements. The report explores how well law firms are adopting proactive compliance strategies, including effective governance frameworks, risk-based internal controls, and ongoing regulatory monitoring particularly around ESG and net zero commitments.

Reputational management

Underscoring the significance of reputation management as an integral part of risk management, the report explores how well law firms are implementing strategies for building a positive reputation and leveraging social media platforms effectively.

Future collaboration

Recognising the interconnectedness of risks, the report explores potential initiatives for collaboration among legal professionals, industry associations, brokers, and insurers in identifying and tackling risks on a cross industry basis. 

Read our full report to find out more.

Contact the team

If you have any questions regarding this report or if you would like to to find out more about Howden and our services for legal practices, please contact the team below.