Preparing for PII renewal in 2025 - FAQs for Law Firms

1. 

Are firms seeing higher or lower PII costs in 2025? 

The market has been softening since late 2023 and we are very much in a soft market at the moment. There have been several new entrants to the market in the last two years, and here at Howden we are very pleased to have some exclusive facilities with special rates, providing you with PII solutions you won’t find anywhere else. For those firms which haven't suffered any significant claims activity or deterioration in claims experience, rates have been dropping steadily since October 2023, with over 75% of our clients enjoying rate reductions. 

2. 

We have Lexcel / CQS / other accreditations – will this get us a discount on our premium?

Insurers typically don't offer fixed premium discounts for accreditation such as LEXCEL or CQS. However, these credentials do attract interest from underwriters, who may adjust premiums favourably if they believe a firm demonstrates strong risk management practices –  of which accreditation is one indicator. Conversely, concerns about weak risk controls can lead to increased premiums.

Importantly, it's not just about holding an accreditation. Underwriters look for evidence that the risk management policies and procedures are genuinely embedded in the firm's culture. When this is the case, it often correlates with a good claims history - which is a far more influential factor in securing lower premiums.

3.

We would like to take out a longer-term policy this time around – will that be possible? 

The majority (although not all) of insurers are currently offering longer-term policies as standard (typically 18 months, although one insurer is even offering two-year policies to some clients). Many firms are currently seeking longer-term policies in order to lock in savings, provide financial stability and to guarantee terms for a longer period, as well as reducing renewal administration. For the 1 April 2025 renewal, over 40% of our clients renewed with policy periods longer than 12 months and we anticipate this figure will be at least this high, if not higher, for 1 October 2025. 

4.

When should I start completing my proposal form? 

In these soft market conditions, many insurers are currently accepting short-form declarations, rather than insisting that firms must complete lengthy proposal forms and provide supplementary documentation and information, which was good news for many of our clients. That said, we are aware that many clients prefer to complete a full proposal form every year in any event, so that all relevant information is to hand if ever required. A full proposal form may be required in any event if you are looking to undertake a market exercise and potentially move insurers. 

In any event, we recommend that your proposal form is ready eight weeks in advance of your renewal date (so please get it completed as soon as possible if you have not already done so!) Submitting information too early can lead to insurers raising concerns that it is out-of-date by the time of renewal. However, because gathering the necessary information can be time consuming, it's advisable to review your proposal form at least three months before your renewal date. This allows you to understand what's required, set a realistic timeline for completion and alert colleagues who need to contribute information.

5.

We’re unable to answer some of the questions in the proposal form because of the way in which we collect certain data / information. What should we do? 

If answering the questions in the proposal form or gathering the required information proves too difficult or impractical, the best approach is to explain this clearly in your renewal submission and provide any alternative details that help address the underlying risk issue the question is targeting. At Howden, we encourage our clients to reach out to us in these situations. We can clarify the intent behind the question and advise whether the alternative information you are able to provide is likely to meet insurers requirements. 

6.

Some of the questions in the proposal form only allow you to answer “yes” or “no”. We deal with some issues in a different but equally effective way to what is being asked in the question, so shall we just tick “yes” to these questions?

The answer to this is an unequivocal no! If there are any questions of this type which you are unable to answer, you should highlight the question in some way (e.g. “see attached”) and then reference the question and provide your answer in full in your supplementary information to accompany your proposal form. Doing otherwise is bad practice and could potentially lead to regulatory / disciplinary action, as happened in this case.

7.

What can we do to demonstrate to insurers that our firm is a good risk? 

A well-prepared renewal submission sets a strong foundation for attracting positive attention from insurers. Take the time to ensure that all required information is accurately completed in your proposal form, and include additional details where necessary to clarify or support your responses. When narrative answers are needed, keep them clear, focused, and directly relevant to the question.

We also recommend submitting a supplementary document or covering letter to help present your firm in its best light. This is your opportunity to highlight any recent positive developments, such as new risk management initiatives, strategic changes, or leadership transitions that may influence how your firm is assessed as a risk.

Avoid repeating information already provided in your proposal form. Instead, concentrate on points that could meaningfully impact the insurer's view of your firm as a risk. If your claims history is less than ideal, use this space to provide context, challenge any outstanding reserves, and explain what steps your firm has taken to prevent similar issues from occurring in the future.

8.

We notify lots of circumstances, but very few develop into actual claims. Will this adversely affect the perception of my firm as a risk?

Not at all. In fact, insurers often view occasional precautionary notifications throughout the year as a positive sign. It demonstrates that the firm takes risk management seriously and fosters a culture where fee earners feel comfortable raising concerns as and when they may arise. Further, a notification which ends up as being closed with no payments made has absolutely no adverse effect on your firm’s claims history.

Experienced underwriters will have a sense of how many precautionary notifications to expect based on a firm's size and areas of practice undertaken. For mid-sized and larger firms, a lack of notifications – especially when the few that are made all develop into significant claims – can in fact raise red flags. It may suggest that not all matters are being reported to insurers that ought to be, which can lead to concerns about the firm's internal reporting culture and risk awareness.

9.

What issues are on underwriters’ radars for 2025?

Conveyancing, being the area of practice with consistently the highest volume of claims activity, is a perennial area of concern for underwriters, hence why there are so many questions you have to answer in your proposal form about conveyancing. Also of note is Wills, trusts, probate and estate administration, with a year-on-year increase in the number of notifications over the past 6 years as reported in our July 2025 Market Report.

As well as the two areas mentioned above, we have identified 5 top claims risks to law firms for 2025, and an article on them is here. They are:

1. Artificial Intelligence (AI);

2. The Building Safety Act 2022 (BSA);

3. Cyber security issues;

4. Mental health and wellbeing of fee earners; and

5. Regulatory issues / SRA breaches.