The NSW parliamentary inquiry into solicitors’ professional indemnity insurance is calling for submissions by September 15.

It will then hold hearings on the potential to introduce competition to the market.

Lawcover, owned by the Law Society of NSW, is currently the sole PI insurer for the state’s solicitors.

The inquiry will examine:

• The impact of current settings for solicitors’ PI insurance resulting in the effective monopoly.
• Pricing and opportunities to drive competition via new market entrants.
• Legislative reform options allowing for competition in the market.

The chair of the Legislative Council committee holding the inquiry, independent MP Taylor Martin, says having a single insurer makes most solicitors captive to a monopoly, and practitioners reportedly pay on average more than double the premiums of their Victorian counterparts.

“There are also potential issues with Lawcover in particular being the sole insurance provider when its owner, the Law Society, is also the regulator and representative body for the profession,” he said.

Liberty Mutual-backed ABC Insurance wants to enter the market, but state Attorney-General Michael Daley said earlier this year the solicitors’ PI space had special features that could impede the full benefits of competition. It was a stable market and costs were reasonable, he said.

Submissions can be lodged here.