Examines what good looks like to an insurer.
Brian Balkin, Senior Vice President, Professional Risk Solutions Lockton.
Banks and insurers focus on the due diligence firms undertake prior to a merger. For an insurer, it is critical to understand how a target or acquiring firm compares to its peers, and any regulatory issues or claims liabilities that could affect the successor firm.
The combined firm may not be attractive to either of their current professional indemnity insurers.
Each insurer has a different appetite for risk and will have identified profiles of firms that they would like to insure. They will look at the combined firm’s:
This information will form their base price for the firm’s professional indemnity insurance premium. Other factors that will impact their analysis include:
It is important to highlight how your supervisory processes and risk management procedures will be integrated.
Whatever strategy a law firm chooses to embrace, it needs to think ahead in order to anticipate future challenges and opportunities.
Talk to us as part of your due diligence process.
Contact your Lockton representative at www.locktonsolicitors.co.uk or call 08450 501 471.