A leading insurance broker has predicted that there may still be late entrants to the solicitors’ professional indemnity market.

Martin Ellis, director of Prime Professions, told the Gazette that some insurers had been interested in opening books for law firms until very recently.

But he said many have baulked at the prospect of funding the assigned risks pool, and have opted to wait for at least another year.

Nevertheless, Ellis expects at least one late newcomer to the market in the build-up to the 1 October renewal.

‘I’m not going to give up hope there may be one or two new entrants to the market,’ he said.

‘There are still live conversations, although in this market they could stop very suddenly.

‘Up until the outcome of the [Solicitors Regulation Authority’s] ARP consultation we had conversations with a number of potential entrants, but as soon as the outcome was known and the ARP continued, a lot were put off.’

Ellis said the lack of new entrants may fuel a rise in premiums this year, adding that ‘most insurers will use the ARP as an excuse to charge a bit more’.

Last week Elite Insurance blamed ARP costs for deterring it from entering the market. Ellis said Elite was not one of the insurers to which he was referring.