Best’s Market Segment Report: Legal Professional Liability Insurers Address Changing Claim Trends, Emerging Risks
The new Best’s Market Segment Report, titled, “Legal Professional Liability Insurers Address Changing Claim Trends, Emerging Risks,” notes that although the recession affected the entire
Outside of a few exceptions, the companies that make up A.M. Best’s legal professional liability composite are primarily mutual insurance organizations or specialty, single-state insurers that serve just attorneys that are members of state bar associations with the principal practice in the state of domicile. Factors considered to be most critical to the success of smaller law firms include acquiring new business, addressing client demands for lower rates, maintaining cost/expense control and reducing time spent on administrative tasks. The legal professional liability insurance companies underwriting these small law firms must understand these factors in order to develop adequate risk management advice and coverage solutions.
Going forward,
Legal professional liability insurers will need to deal with the impact of the changing marketplace on their clients. More online-only legal service providers have emerged, but the report notes that they may not be a capable substitute for an actual attorney, in terms of the ability to provide a complete array of legal services. Should potential clients decide to employ these services to a greater degree, the impact on the premium revenue for insurers of law firms likely would be negative if those firms lose sources of fee income. Moreover, the pending large-scale exit of baby boomers from the workforce will bring about further changes in workplace dynamics that could also affect premium volume.
For the full copy of this market segment report, please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=276016.
Copyright © 2018 by A.M. Best Rating Services, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180720005212/en/
Senior Industry Analyst –
[email protected]
or
Senior Financial Analyst
[email protected]
or
Manager, Public Relations
[email protected]
or
Director, Public Relations
[email protected]
Source:
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News