Law Society to support solicitors' request for insurance broker commission details
31 May, 2012
The Law Society will today (31st May) 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 (pictured) 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, it will give solicitors 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).
The Law Society has 150,000 individual members and 11,000 member firms operating in domestic and overseas markets and provides a range of products and services for its members.