The Solicitors Regulation Authority (SRA) has announced how it plans to transform the PI market and the Assigned Risks Pool (ARP).
Following on from over 300 responses to the consultation document that it issued the SRA has announced the following changes:-
- The amount of time that a firm can be in the ARP reduces to six months form 12 – effective October 2011
- From October 2012 the ARP will be jointly funded by the qualifying insurers and the profession. Liability for claims arising from firms who are uninsured will transfer from the ARP to the Compensation fund
- From 2013 The ARP will be replaced with a system whereby insurers will offer a three month extension to existing policyholders who are unable to obtain cover for the following year.
- The single renewal date for all firms will remain as currently until at least October 2013 to facilitate these changes.
- Financial Institutions will be required to comply with the same minimum terms and conditions.
A policy statement will be issued on Monday to confirm the details. Details of the original proposals are available at www.sra.org.uk/sra/conultations
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