We leave it to insurance brokers to comment on the reports of a hardening insurance market for solicitors. However we do comment on some areas of emerging risk which may impact on insurers directly or indirectly further down the line. There may be uncertainty as to the breadth of cover under the SRA Minimum Terms and Conditions, and more firms may fail, triggering run-off cover, but not all will pay the additional premium for this.
Many personal injury firms may be reeling from the recent Court of Appeal decision in Herbert v HH Law [2019] EWCA Civ 527 holding, broadly, that they could not charge a 100% success fee unless they could justify it with a risk assessment: could this be the next TAG? (We refer to the long-running series of claims arising from the collapse of The Accident Group which went into administration in May 2003.)
Many litigation firms will also be contending with disappointed clients as a result of the collapse of After the Event insurer Lamp, an unrated insurer based in Gibraltar.
Claims arising from the purchase of leasehold residential property, with concerns over escalating ground rents and fees for consent under covenants, have not materialised as expected.
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