News of a very substantial P.I. claim has hit the insurance market. Standard Life is taking a number of insurers, a massive job in itself. One hates to begin to think what the legal costs could be, let alone the £100m that Standard Life is saying should have covered the cost that the provider was forced to put into the Standard Life Pension Sterling Fund, when the credit crunch was at its height.
Apparently Standard Life is to pursue this claim through the London Commercial Court, against the professional indemnity insurers. The scene is set for a very interesting battle with one giant life insurance & pension providing company, against the general insurance providers of professional indemnity insurance which we could assume would be a joint action by Standard Life against those insurers. At present there is no indication of which of the professional indemnity insurers held the primary layers of the P.I. policy, and what exposures each of the excess layer providers would be liable for, in the event that the court finds in favour of Standard Life. If of course the court do find in favour of Standard Life as apposed to the professional indemnity insurance companies this may well set a precedent for future claims and therefore a possible re-write of the underwriting manual where 'Pension Funds' are involved.
It may also affect P.I. premiums for any business operating in the financial sectors. Naturally at this stage who knows what the outcome of such a claim could be, but either way it seems that the legal profession are in for a 'Bonus' income and with various law companies for each insurer having to perhaps confer with each other in the representations and defence.
This will be one of the most interesting claims in the insurance world to follow. You cannot even begin to try and predict the outcome between those various insurers and their legal representatives. It of course would be very interesting to know which solicitors were going to be in action pursuing and defending this professional indemnity insurance claim. Given the size of the claim and the insurance companies involved we could expect some very large law firms to be representing the various parties, and maybe a great court battle.
It would be a good day out when 'Summing Up'
