It seems loyalty is not hard to come by, if we look at how law firms stick with their insurance brokers for their professional indemnity cover.
According to Law Society’s annual PII survey, 85% of law firms used the same broker while 72% renewed their policies with the same provider in 2016, as reported by
Solicitors Journal.
In fact, consecutive studies showed a consistent increase in loyalty – 47% used one broker in 2013-2014; 57% in 2014-2015; 63% in 2015-2016; and 71% in 2016-2017. For last year, 92% of surveyed firms said they were satisfied with their current brokers.
“Professional indemnity insurance isn’t an ordinary commodity like car insurance. If you’ve been loyal to your broker, they’ll usually look after you when things get a little uncertain,” explained legal risk partner Frank Maher, as quoted by the report.
He also cited the use of schemes as a factor impacting smaller law firms’ decision not to switch brokers.
“Unless something has happened, there’s no reason why you would change broker, and since most have a scheme with an insurer, you will be with the same insurer too,” said Maher.
The study involved about 600 small to medium-sized law firms in England and Wales.
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