STEEP RISE IN HIGH COURT PROFESSIONAL NEGLIGENCE CLAIMS (January 2011)
The number of claims for professional negligence heard in the High Court more than doubled according to the latest figures from the Ministry of Justice.
Claims made against accountants increased dramatically from none at all in 2008 to 28 in 2009. Solicitor claims rose by 163% from 80 in 2008 to 210 in 2009. Surveyors and Estate Agents sustained 17 claims compared to only 1 in 2008 while claims against other professionals jumped by 27% from 66 in 2008 to 84.
Every year reported since 2006 the number of claims in the High Court has risen and lawyers expect this trend to continue.
Claims heard in the High Court are only a small part of the full picture though and most disputes never make it that far.
Recessions in the past have generally preceded sharp changes in professional indemnity insurance market conditions. Apart from the PI market for Solicitors and Surveyors there are few signs of a lack of underwriting capacity or falling premiums coming to an end. However, most Insurers protest at the lack of profitability within UK Professional Indemnity business at present and a rising tide of claims combined with other looming factors such as compliance with Solvency II make premium increases likely in 2012 if not this year.
Source : Ministry of Justice National Statistics - Oct 2010
|
Professional negligence |
2005 |
2006 |
2007 |
2008 |
2009 |
|
Claims against solicitors |
52 |
30 |
31 |
80 |
210 |
|
Claims against accountants |
1 |
2 |
0 |
0 |
28 |
|
Claims against surveyors and estate agents |
0 |
0 |
0 |
1 |
17 |
|
Claims against members of other professions |
13 |
10 |
31 |
66 |
84 |