We know there is still some uncertainty around the impact of the Insurance Distribution Directive (IDD), and how solicitors and conveyancing professionals can best meet their clients’ needs while remaining compliant.
For some, the main question is around whether or not you need get multiple quotes. The simple answer is, no, you don’t. The main emphasis of the IDD is to shift focus away from price and move towards customers being better informed, providing products which meet their demands and needs, like ensuring comprehensive policy cover and excellent all-round value for money. There’s nothing that says you need to obtain multiple quotes.
In essence, the IDD changed very little when it comes to arranging legal indemnity policies, which unlike mainstream insurances, is a niche product linked directly to the core legal work undertaken by law firms. It remains the property lawyer’s role to highlight any title defect and find either a legal or insurance solution, before the client’s transaction can proceed. And the exempt professional firm status that solicitors hold with the FCA specifically allows firms to arrange legal indemnity policies as it’s ancillary to the main conveyancing work undertaken on behalf of the client.
But in terms of remaining compliant, what’s the difference between getting one quote or multiple quotes? When you get multiple quotes, it’s your responsibility, as the expert on this specific transaction, to identify which one best satisfies the client’s needs. To do this, you have to compare the cover provided under each policy, taking note of any exclusions and conditions and balancing this against the insurers’ credit rating, and ultimately, the premium.
Using just one insurer means that you undertake a regular review (for example, once a year) to satisfy yourself that your chosen provider is satisfying the customer’s demands and needs. By doing the due-diligence once a year, you will save time on each policy quote.
So regardless of whether Isis is one of your providers, or your only source for a legal indemnity quotation, you can advise your clients that, with us, they will receive the best all round service, from quotation to claims payment. We have the advantage of being underwritten by Liberty Legal Indemnities, who are rated A (strong) by S&P Global Ratings. And the quality of service from our Underwriting and in-house Claims teams means that when you obtain a quote or policy from us, you can be 100% confident that you are acting in the best interests of your client.