Today's Conveyancer Interview with Edward Donne: An Insight into the PII Market

Watch Edward Donne's interview with Chris Harris from Today's Conveyancer

Time is nearly upon us for firms to begin their professional indemnity insurance (PII) renewals, with the usual ‘renewal season’ fast approaching.

However, with the unprecedented times that we’ve experience in 2020, providing some information on the PII market at the moment seemed fitting.

Edward Donne, Divisional Director in our Professional Indemnity division took some time to speak to Chris Harris at Today’s Conveyancer, giving some insights into the PII market currently being experienced by Licensed Conveyancers.

Edward looks after Howden’s Licensed Conveyancer clients, helping them to get the cover they need in a changing market. In this interview he shares his advice on how to reassure underwriters, and what steps firms need to take to help with their renewal.

Howden Commentary

"I was delighted to take part in this interview with Today’s Conveyancer - and although it was recorded in early August 2020 - the points raised remain very relevant for Solicitors especially in the run up to 1st October (a key renewal date)

The insurance market remains very difficult at the time of writing, with insurers shying away from Firms involved in Buyer Funded Development work, see also the SRA announcement on Solicitors and investment schemes. 

Insurers are looking to reduce their exposure to Conveyancing work - and those Firms that are unable to provide evidence of their Risk Management practices 

It will be more important than ever for Firms to help themselves by providing potential insurers with detail as to all the good things they do to prevent claims."

Edward Donne, Divisional Director, Howden

What is happening in the PII market at the moment?

20%-30% of licensed conveyancers have seen an increase in their renewals. Although many of these are large firms, there are quite a few smaller firms who as a result of the increase aren’t buying excess levels of cover which relate to the solicitors’ market.

What things should you consider when filling out your application?

"You want to sell the best possible story of your firm that you can."

Naturally, as with all insurances the renewal dates creep up on us, with many solicitors looking to renew on 1st October. Whenever your renewal date, you will need to be prepared.

Things to consider include typing up your renewal documents to ensure your application is easy to read, and writing a covering letter outlining all the positive things about your firm to your underwriter.

What impact will cash-flow have on this year’s renewal?

Cash-flow for firms in 2020, is obviously slightly different compared to what it would be in any normal year. Edward takes the time to explain the importance of ensuring you can finance your renewal.

“Cash is king at the moment. Have a think about how you’re going to pay your premium and take a look at the options available to you.”

What types of increases have you seen in excess levels, which you’ve previously described as dramatic?

What are the risks posed to firms who are making people redundant and others who are hiring them?

“Insurers want to be sure you’re equipped to carry the work out that is coming your way.”

Criminals can take advantage of those who are under pressure, and with the legal sector being the jewel in the crown for them, insurers can get a little worried about this. So, putting steps in place to ensure that you’ve covered all of your risk areas will help to reassure your insurer. Evidencing what you’re doing about fraud and protecting your people is key.

With insurance renewal season underway, have you noticed a surge in people contacting you asking for advice?

For more information about the services provided by Howden and to get in touch with Edward and his team regarding any advice please get in touch.