What does PII renewal look like for Conveyancers for 2025?

We dive into the upcoming Professional Indemnity Insurance (PII) renewal period and the challenges it poses to those of you working within the conveyancing profession.

With the renewal season fast approaching, it's essential that firms are well-prepared to navigate the process and secure the best possible quotes. We'll explore the key factors insurers consider, providing practical tips and advice on how to present your firm in the most favourable light.

Overview of the current PII market

The PII market for conveyancing firms like yours has faced significant challenges since the onset of the COVID-19 pandemic.  This "hard market" has been driven by several factors, creating a perfect storm for increased premiums and limited options.

Several key elements contributed to this difficult environment; involving a combination of rising claims, increased reinsurance costs, and sector-specific challenges.  These combined pressures resulted in substantial premium increases and a lack of alternative quotations.  Firms found themselves with limited options, often forced to accept the terms offered by their existing insurer.  This lack of competition further contributed to the hardening of the market.

However, the professional indemnity insurance market is cyclical by nature. Whilst we have experienced a prolonged period of rising premiums, there are emerging signs that the market may be beginning to soften.  We experienced this first hand towards the end of last year as we introduced two new insurers to our panel and expanded our relationship with Collegiate. These additions not only drive increased competition within the market but more importantly provide you with more choice, potentially leading to more favourable premium outcomes.

What do you need to do ahead of your renewal?

The annual Professional Indemnity (PI) renewal process can often feel like a scramble, a last-minute dash to gather information and secure suitable cover. For firms regulated by the Council for Licensed Conveyancers (CLC), this process carries added significance, as maintaining adequate professional indemnity insurance is a regulatory requirement.  A proactive and well-planned approach is essential, not only to reduce stress and potentially lower premiums, but to also ensure compliance with CLC regulations and guarantee your firm has the right protection in place.

Months before your renewal date, the process should begin with a thorough internal review. Don't just dust off last year's proposal – treat this as an opportunity to genuinely assess your firm's current risk profile in the context of conveyancing practice. Begin by asking yourself…

• Have there been any significant changes in the volume or type of conveyancing work you undertake?
• Have you expanded into new areas of property law?
• Have you taken on any new, high-value clients or complex transactions?
• Have you implemented new technologies or processes that impact risk, such as online conveyancing platforms or automated document checking.

All these factors, especially those relevant to CLC compliance, need to be very carefully considered.

You should be requesting up-to-date claim summaries from your brokers as soon as possible. These summaries will enable you to create a detailed analysis of past claims, paying particular attention to any claims related to conveyancing activities. Understanding the nature and frequency of any claims, even minor ones, is crucial. What lessons were learned? Have you implemented any changes to prevent similar incidents from occurring? Documenting these changes and demonstrating a proactive approach to risk management, particularly in areas highlighted by the CLC, is vital when speaking to insurers. Demonstrating adherence to CLC's risk management guidelines will be beneficial.

Finally, gather together all necessary financial information. Insurers, and the CLC, will want to see detailed revenue figures, client breakdowns, and information about your firm's financial stability.

We understand some firms haven't needed to complete a full proposal form for their PII renewal in recent years, and that a streamlined approach may have worked in the past. However, the PII market has undergone significant changes, and relying on outdated information or assumptions can be risky. 

To make this process as efficient as possible for you, we're working closely with insurers to develop a streamlined approach. This involves creating a short declaration form to gather the essential information needed to obtain indicative premiums on your behalf. This short form will be much less time-consuming than a full proposal, allowing you to quickly and easily compare options from different insurers and enabling you to explore the market without a significant investment of your time. We believe this approach will help you make informed decisions about your PII and ensure you have the best possible coverage for your firm in the current market.

We’re making things easier for you

We recognise that PII renewal can be a stressful time, particularly for those undertaking conveyancing work and you will be seeking ease, choice, expertise and guidance. Our CLC team are set up and ready to help navigate you through in 2025.

Let us help you navigate this complex market. We offer a benchmarking service, allowing us to assess the competitiveness of your existing policy before the renewal rush begins.  This proactive approach enables you to explore all available options and make informed decisions about your PI coverage. We provide an honest and transparent assessment of your premium, empowering you to secure the best possible terms in the current market. 

To talk about your next renewal and how we can help, please get in touch.