LawNet firms, however, are again set to ‘pool’ the placement of the purchase of their PII programmes. At a total of £1.2 billion, ours is one of the largest placings in the legal sector.

The LawNet PII scheme was launched in 2000, following the demise of S.I.F with the objective of providing a long-term, stable insurance solution of a quality and cost that member firms could not achieve by acting individually in the market.

Pooling premium income over the longer term with a strong insurance partner delivers several benefits for our firms: -

• a steady approach through the insurance cycle
• drives competitive premium negotiation
• stability and security in claims management and settlement
• reduced administration for firms.

Banding together just for the sake of it doesn’t impress insurers though, especially not in the current market. So apart from the big premium spend, insurers are also attracted by the quality and risk profile of the LawNet group, with all firms independently assessed every six months to the LawNet Quality Standard which is ISO 9001 accredited. LawNet is one of the few such groups where quality assurance is mandatory.

Market conditions for solicitors' PII renewal are expected to be tough again this year. Contributory factors include the background of continuous losses from the property driven claims cycle in recent years and losses under the assigned risks pool (ARP) which continue to rise, driving insurers to take a cautious view of risks underwritten.

I have always argued that, if a firm does stand on its own, is of a reasonable size, with a good risk profile, there is no reason why it shouldn’t get a good deal in the market. What it won’t have though is the extra buying power that we have to drive the price even lower.

We are expecting a satisfactory renewal for our members again this year, with better than average premium rates and consistency of underwriting and less volatility to market trends. For our firms, renewal season is not quite as daunting as it might be for those outside our scheme.

For other firms, protection from spiralling PII costs has to start from within and a commitment to reducing claims through robust risk management programmes is the best place to start.