Solicitors' professional indemnity (PI) premiums fell by nearly 15 percent in the 2006 renewal season, compared with 2005.

Provisional figures indicate that total premiums charged by insurers to solicitors for the first £2m-£3m of cover were £211.4m in 2006/07, compared with £243.8m in 2005/06.

Stephen Holland, executive director, professions division, at broker Lockton, explained that rates were at historically low levels and more so, that significant increases in premiums were expected in the future. “Solicitors should enjoy this year's savings, but must be aware that when rates rise, insurers will offer the best terms to those firms with excellent claims records and high standards of risk management,” he said.

Lockton said it had secured premium savings of up to 40 percent for a number of clients and an average saving for clients of 15 percent. Sandra Neilson-Moore, European practice leader for law firms' PI at Marsh, said current rates were sustainable. “The perception is that the market is in profit as it has not lost lots of money on claims. Rates are sustainable if claims experience doesn't worsen. It would take another spike to change entirely.”