SRA News – Elite Insurance
Kevin J McParland, Chairman of McParland Finn Ltd, when requested commented as follows:
“Over the last few years the economic climate has created a situation where much money from around the world is looking to find a home where it is felt a return on capital can be made.
The consequence for the insurance market, particularly in the Professional Indemnity sector, has been the creation of significant over capacity.
This has been good for legal firms as it has stabilised or reduced rates in respect of their Professional Indemnity cover.
However, there have been casualties along the way and Elite Insurance is one of them. During this period of reducing rates, Approved Insurers who had either a poor financial rating and/or no financial rating have not been able to live with the premium reductions and have simply been squeezed out of the market, by those with more financial resilience.
Whilst the default advice from Broker to Client should, in these circumstances, be to replace the cover immediately with an “A” rated insurer, there are a number of pointers which may persuade those firms with live Elite Insurance policies to take no action at this point in time.
- It appears Elite Insurance are dealing with their exit from the Solicitors PII market in an orderly fashion and nothing suggests that they are unable to complete matters on this basis, including the handling and payment of all claims,
- That view is strengthened on the basis that they appear to hold significant reinsurance, this being placed with an “A” rated insurer(s)
If any MLS Members who currently hold policies with Elite Insurance and require more specific feedback they should approach their own Insurance Broker. McParland Finn Ltd (MFL) took the decision not to recommend to their clients a transfer to Elite Insurance or similar.”