The Law Society will today publish its 2012 PII Buyers' Guide,
which provides detailed guidance to all solicitors in choosing
brokers and insurers when renewing their professional indemnity
insurance (PII) cover. The Guide will provide invaluable
assistance to solicitors at renewal time.
This year the guide provides a particular focus on the
relationship between solicitors and the intermediaries they use to
help them choose the right insurance partner and explains the
level of service solicitors should expect. It also advises
solicitors about their rights under Financial Services Authority
(FSA) rules, which require brokers to reveal all commission they
receive, if asked.
Law Society chief executive Desmond Hudson said: 'The FSA
created the requirement for brokers to reveal, if asked by their
client, commissions and fees that they receive to promote
transparency. We are eager to help in that aim and will be
providing all of our members with the tools required to do
this.
'We consider that by requesting this information solicitors will
have a better understanding of the relationships between insurers
and intermediaries, as different brokers provide different types of
services which will necessarily be reflected in their
remuneration.
'This is part of the Society's longstanding campaign to
encourage both greater transparency in the PII renewal process and
to equip our members to make well informed decision about the use,
service standards and the price paid by solicitors for broker
service and PII cover.
'We are also aware that, while it may appear to some solicitors
that their broker is dealing directly with qualifying insurers, in
some instances, the broker forms part of a chain of sub-brokers who
access insurers via other brokers. We want to help solicitors
understand what services they are buying and make informed
choices.
'Transparency is important and we hope that our members will ask
more of their brokers this renewal. Knowing what level of service
to expect can help solicitors to choose an appropriate broker to
meet their requirements. Equally, it may help solicitors to see the
benefits of continuity in the broker they use.'
As part of the Law Society's member support initiative, in
addition to the Buyers' Guide, a template letter for solicitors to
send to their broker will be made available on the Law Society's PII website today (Thursday 31 May).
Ends