Professional indemnity for law firms: 2025 market landscape and strategic considerations

The UK PI market for law firms has entered a more stable pricing environment, particularly for law firms with strong claims history and proactive risk management. However, this apparent stability masks growing divergence in underwriter appetite, expectations, and policy response.

1. 01

   Rate Stabilisation—But Not a Soft Market

   After sustained double-digit increases between 2019 and 2022, 2023–2024 brought relative calm. Many mid-sized firms now face flat renewals or modest decreases—provided they meet insurer expectations on risk transparency and governance.

   However, conveyancing-heavy firms, those with past SRA activity, or those with high turnover and minimal compliance documentation continue to attract scrutiny.

2. 02

   Insurer Focus: Where the Market Is Looking Closely

   • Conveyancing: Still a dominant claims driver. Capacity remains tight for firms with poor file review processes or high-volume residential work.
   • Regulatory investigations: Insurers now probe firms on AML controls, compliance audits, and internal conduct training. They’re looking for more than just tick-box responses.
   • Employee wellbeing: Risks involving employee burnout should be well managed, particularly with hybrid working patterns and pressurised targets.
   • Cyber-adjacent risks: Even if not covered under PI, weak cyber governance can flag broader operational risk concerns.

3. 03

   Strategic Response: How Leading Firms Are Adapting

   WTW clients are approaching PI in 2025 not as a static insurance product—but as a dynamic part of risk strategy.

   They are:

   • Conducting annual PI programme reviews (not just at renewal)
   • Benchmarking limits, retentions and premiums against peer firms
   • Aligning PI wording with real exposures
   • Integrating PI considerations into M&A planning, partner onboarding, and risk committee agendas

Our take

A ‘flat’ premium isn’t always a win. The real question is—what’s behind it? Are you covered in the areas that matter most? That’s where Willis helps our clients go deeper.

“

A ‘flat’ premium isn’t always a win. The real question is—what’s behind it? Are you covered in the areas that matter most?”

Jon Angell | Head of PI Legal Services, FINEX GB

Author

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Jon Angell

Head of Legal Services - PI FINEX

email Email phone +44 20 3124 6535

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Professional indemnity insurance contact

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Jade Scorer

Director FINEX PI

email Email phone +44 20 3124 8402

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