Would a deregulated insurance market offer adequate protection to the public?
A deregulated market would provide adequate protection to the public provided that adequate safeguards were developed dealing with the minimum terms and standards, consistent with the terms of the policy now offered by LawCover. In particular, insurers would be required to offer run-off cover and to accept claims even if no disclosure had been made by the solicitors. Consideration would need to be given to arrangements to be made between insurers in the event that an insurer ceased to operate. 11.3 If a competitive market is established, should insurers be free to adopt risk weighting and to refuse cover? Should there be limits on the price differentials between policies and an obligation on insurers to accept any proposal? A competitive market will not be established unless insurers are able to adopt risk weighting. Risk weighting is essential to avoid undue distortion of the insurance market through cross subsidisation. Arrangements will need to be made for the insurance of solicitor
