News release

SRA consults on technical changes to PII policy wording

We are consulting on technical changes to the minimum terms and conditions that need to be included in professional indemnity insurance policies.

These amendments are necessary to align with details in the Insurance Act 2015 and are not fundamental changes to indemnity insurance. The Insurance Act 2015 comes into effect in August 2016 and includes changes to the minimum terms and conditions of PII cover taken out by solicitor firms.

We are therefore proposing to amend the wording to reflect the change in the law. More fundamental changes to indemnity insurance are not part of this consultation. They will be part of the ongoing comprehensive review of financial protection, with a consultation to be held later this year.

There will be no direct impact on the overall level of consumer protection offered by firms regulated by us as a result of the proposed change, which, it has been suggested, should take effect on 12 August 2016 - the date that the Insurance Act comes into effect.

The main proposal is to raise the standard of disclosure for firms renewing their insurance from "non-disclosure"” to "failure to fairly present the risk". This reflects changes the Insurance Act makes in relation to business, or "non-consumer" insurance policies.

We havelaunched a six-week consultation on the proposals which closes on Thursday 24 March and can be accessed here:

Go to the consultation

 
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