A leading after-the-event insurer has confirmed it will enter the solicitors professional indemnity insurance market this year. Elite Insurance will open a book of £3m for smaller, niche firms it has worked with in the past.

The move was prompted by the market becoming more secure following the decision to close the assigned risks pool (ARP), the company said. Chief executive Jason Smart explained the firm had previously held off amid concerns that regulators were reluctant to reform the system. ‘We wanted a clearer picture and with changes afoot to the ARP we felt it was an appropriate time to come onto the insurers market,’ he added.

Smart predicted that more insurers will enter the PII market this year, helping to address what he called ‘unsustainable’ five-figure premiums currently charged to some firms.

The insurance sector has been buoyed by the removal of the ARP ‘safety net’ for firms that could not get cover from qualifying insurers.

For the first time, the profession will share liability for the 2012 ARP with insurers before the pool is shut from September 2013.

Firms remaining in the ARP have been given until April either to secure insurance on the open market or sell, merge or close their practice.

The Law Society has confirmed that it will withdraw Conveyancing Quality Scheme accreditation from firms remaining in the ARP.