Aon has recently announced the withdrawal of its Managing General Agent (MGA) Maven from the Solicitors professional indemnity insurance market.
In a surprise move, those firms insured with Maven have been contacted by Aon to advise they are unable to provide a renewal quotation and that they will need to seek cover elsewhere.
According to reports, a number of the capacity providers in Lloyds of London who have previously supported the Maven MGA have withdrawn their support. This comes on the back of strict adjustments imposed by the London based insurance corporation to address a decline in the profitability of the market.
The withdrawal mainly affects small firms and sole practitioners, many of which will see their Maven policies expire on 30 September, leaving little time to make alternative arrangements for cover and which has caused some frustration among those affected.
The solicitors PI market has seen numerous Insurers exit in recent years on the basis of poor profitability.
It’s widely believed that as a profession, claims payments for solicitors professional indemnity exceed their overall premium contributions. With a further reduction in market capacity from the Maven withdrawal, this almost certainly means that premiums for the profession will rise in the near future.