The Assigned Risks Pool (ARP) was the safety net within the SRA’s professional indemnity framework for solicitors’ firms unable to obtain cover from any Qualifying Insurer at renewal. The ARP provided a defined period of cover during which the firm could either secure replacement cover from the open market or wind down its practice. The ARP has been substantially reformed in the years since the framework was introduced and the current arrangements for firms unable to obtain cover differ from the historic ARP model.
What the Assigned Risks Pool meant in the SRA framework
When the SRA introduced its current PI framework in the early 2000s, replacing the previous Solicitors Indemnity Fund mutual model with open-market cover from Qualifying Insurers, a structural question arose. The compulsory cover requirement meant every regulated firm needed cover from a Qualifying Insurer; but Qualifying Insurers, as commercial businesses, retained the right to refuse to quote. What happened to firms that no Qualifying Insurer would accept?
The Assigned Risks Pool was the answer. The ARP was funded by levies on Qualifying Insurers and operated as a pool of last resort. A firm unable to obtain cover from the open market at renewal could enter the ARP, which provided cover on the SRA Minimum Terms and Conditions for a defined period. During that period the firm was expected either to address the underwriting issues that had made it uninsurable on the open market and then secure cover, or to wind down its practice in an orderly way.
The ARP framework was deliberately designed to be unattractive as a long-term solution. Premiums were high, the period of cover was limited, and entry to the ARP triggered SRA attention to the firm’s risk profile. The intent was to provide a transitional safety net, not a permanent home for hard-to-place risks.
Over the course of the ARP’s operation it accumulated significant losses. A relatively small number of firms generated a disproportionate share of claims, and the levy on Qualifying Insurers became a substantial cost factor in the solicitors’ PI market. The SRA reviewed the ARP framework several times and introduced reforms to limit pool exposure, including reducing the maximum period of ARP cover and tightening eligibility.
How the ARP framework evolved
The original ARP gave firms an extended period of cover — initially twelve months — during which to source replacement cover or wind down. Subsequent reforms reduced this period substantially. The framework was tightened to require firms entering the ARP to commit promptly to either remedial action that would make them insurable or to a managed cessation.
In the most significant set of reforms, the SRA effectively phased out the original ARP as a continuing market backstop. The current framework relies on a combination of mechanisms: an “extended indemnity period” allowing firms a defined window at the end of their policy to source replacement cover; a “cessation period” providing further limited cover for firms unable to secure replacement cover and required to wind down; and the post-six-year run-off framework now sitting within the Solicitors Indemnity Fund (SIF) for cessation-related long-tail claims.
The terminology “Assigned Risks Pool” is still encountered in older guidance, partner-level discussions and historical claims handling — and it remains a useful concept for understanding the structural logic of the SRA framework — but firms approaching a difficult renewal in 2026 should not assume an ARP in the original form is available. Current SRA guidance and the broker’s contemporary advice are the right reference points.
How firms unable to obtain cover are handled today
The contemporary framework for a firm unable to obtain cover at renewal works in stages.
Extended indemnity period. The current SRA framework provides an automatic extended indemnity period at the end of the policy year — typically a defined number of days — during which the firm continues to be covered by the existing Qualifying Insurer on the same terms while it attempts to source replacement cover. The firm is required to make active efforts to renew and to notify the SRA if it is unable to do so.
Cessation period. If the extended indemnity period expires without the firm having secured replacement cover, a cessation period follows during which the firm cannot take on new work and must wind down its existing matters. The firm remains covered for work in this period, on prescribed terms.
Run-off. On cessation, the firm enters the prescribed six-year run-off period during which the last-on-cover Qualifying Insurer continues to provide cover for claims arising from past work. After the six-year run-off, long-tail claims are handled through the SIF framework (currently funded by the SRA itself following reforms to the previous SIF arrangements).
Regulatory attention. A firm in this position attracts SRA attention. The reasons the firm has become uninsurable are scrutinised. The SRA can intervene in the firm’s practice if regulatory concerns are sufficiently serious.
The practical effect is that firms in 2026 do not “go into the ARP” in the way firms did in the framework’s earlier years. They enter a defined sequence of extended indemnity, cessation and run-off, with the SRA closely involved.
Worked example
A two-partner law firm with £400,000 fee income, operating predominantly in residential conveyancing, has had three claims notified to insurers over the last four policy years. The total quantum of claims has been moderate (around £180,000 across all three), but the frequency and the firm’s small premium base have made the firm difficult to place.
At renewal, the broker approaches the Qualifying Insurer pool. Of the insurers currently writing solicitors’ PI, none provides a quote at any sustainable premium level. The current insurer indicates it will not renew. Three months before renewal, the firm has no quote in hand.
The broker continues to approach the market. Two Qualifying Insurers indicate they might quote at a premium of £35,000-£40,000 — around three times the firm’s previous premium — subject to detailed risk management improvements and a higher excess. The firm explores these options and addresses the underwriting concerns; one of the two ultimately provides a binding quote and the firm renews.
Had no quote been obtained, the firm would have entered the extended indemnity period at the end of the policy. During that window, intensive efforts to secure cover would continue. If no cover was available, the firm would enter the cessation period, stop taking on new work, complete or transfer existing matters, and then enter the prescribed run-off period.
The point of the framework is that there is no permanent “ARP” home for the firm — only a structured exit if the firm cannot secure open-market cover. The framework is designed to protect clients and the profession by ensuring orderly cessation rather than uninsured continuation.
When this matters most
The historic ARP and its successor framework matter to firms in three positions.
Firms with claims experience or risk profiles that strain insurer appetite. Volume conveyancing practices, firms with notifications around investment scheme work, firms with leasehold cladding exposures, and firms whose principals have left a previous firm with regulatory issues all face renewal difficulty. Early broker engagement and structured presentation of risk management improvements are the means of avoiding the extended-indemnity / cessation pathway.
Firms considering retirement, succession or wind-down. Understanding the run-off framework that follows cessation — both the six-year prescribed period and the post-six-year SIF framework for long-tail claims — is part of succession planning. The cost of run-off cover and the timing of its purchase relative to cessation are material to the partners’ personal exposure.
Firms approached by potential acquirers or merger partners. A firm in difficulty on PI is a hard firm to acquire. The acquirer inherits the run-off liability and the claims history. Firms in this position need to understand how the run-off and successor-practice rules under the SRA framework attribute liability to the acquiring firm.
Common variations and current state
The terminology has shifted over time. “Assigned Risks Pool” remains in informal use but the SRA’s current rulebook uses different language for the contemporary framework. Solicitors’ firms and brokers in 2026 are typically working with the language of “extended indemnity period”, “cessation period” and “successor practice” rather than “ARP” itself.
The funding model has also shifted. The original ARP was funded by levies on Qualifying Insurers; the current framework places different cost allocations and the SIF post-six-year run-off is funded through the SRA. This affects pricing in the Qualifying Insurer market because the embedded cost of the safety net is reflected in premiums.
For firms in Scotland (regulated by the Law Society of Scotland) and Northern Ireland (Law Society of Northern Ireland), separate PI frameworks apply. The historical ARP and the current arrangements described here relate to the SRA framework for solicitors regulated in England and Wales.
Related concepts
The SRA Minimum Terms and Conditions are the prescribed wording that applied to ARP cover and applies to current Qualifying Insurer cover. Qualifying Insurers are the open-market insurers whose declining to quote historically pushed firms into the ARP. Circumstance notification is the discipline that, applied consistently, helps keep firms insurable.
Frequently asked questions
What was the Assigned Risks Pool in solicitors PI?
The Assigned Risks Pool (ARP) was the SRA’s safety net within the solicitors’ PI framework for firms unable to obtain cover from any Qualifying Insurer at renewal. The ARP provided cover on the Minimum Terms and Conditions for a defined period during which the firm could secure replacement cover or wind down its practice. It was funded by levies on Qualifying Insurers.
Does the Assigned Risks Pool still exist?
The original ARP framework has been substantially reformed. Firms in difficulty at renewal today work through a sequence of extended indemnity period, cessation period and run-off, with closer SRA involvement, rather than entering an ARP in the original form. The current terminology and rules differ from the historic ARP and current SRA guidance is the right reference.
What is the extended indemnity period?
The extended indemnity period is a defined window at the end of a policy year during which a firm whose policy has not been renewed continues to be covered by the previous Qualifying Insurer on the same terms. The purpose is to give the firm time to secure replacement cover. The firm must make active efforts to renew and notify the SRA of its position.
What happens if my firm cannot obtain PI cover from any Qualifying Insurer?
The firm enters the extended indemnity period and then, if no cover is secured, the cessation period during which it cannot take on new work. The firm winds down existing matters under prescribed cover and then enters the six-year run-off period. The SRA is closely involved throughout. The framework is designed to deliver orderly cessation rather than uninsured continuation.
What is the difference between the ARP and the Solicitors Indemnity Fund?
The Solicitors Indemnity Fund (SIF) was the predecessor of the current Qualifying Insurer framework — a mutual fund covering all SRA-regulated firms before the move to open-market cover in the early 2000s. The ARP was the safety net within the Qualifying Insurer framework that replaced the SIF. The SIF terminology now relates to the post-six-year run-off arrangements maintained for cessation-related long-tail claims.
Was the ARP a Qualifying Insurer?
No. The ARP was a pool funded by Qualifying Insurer levies, not itself a Qualifying Insurer. Cover provided through the ARP was on the same Minimum Terms and Conditions as cover provided by Qualifying Insurers, but the funding mechanism was distinct.
What costs were associated with ARP cover?
ARP premiums were historically high, reflecting the policy goal of making the pool unattractive as a long-term solution and discouraging firms from drifting into it. The pool was funded by levies on Qualifying Insurers, which made it a cost factor in the wider solicitors’ PI market and a target of successive reforms.
Where can I find current SRA guidance on what happens if I cannot obtain cover?
The SRA publishes current guidance on the extended indemnity period, cessation period and run-off framework on its website. Firms approaching a difficult renewal should engage their broker early and consult current SRA materials. Reliance on guidance describing the original ARP is not advisable because the framework has been reformed.
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About Apex Insurance Brokers Ltd
Apex Insurance Brokers Ltd is a Bristol-based independent insurance broker authorised and regulated by the Financial Conduct Authority (firm reference number 724952), registered at Companies House under number 07014570. The firm advises UK professional service practices on Professional Indemnity and related covers. Contact: info@apexinsurancebrokers.co.uk or 0117 325 0027.
Last reviewed: May 2026 by Apex Insurance Brokers Ltd.
Important: this article is general information, not advice on your specific circumstances. For advice on PI insurance for your firm, contact us on 0117 325 0027 or info@apexinsurancebrokers.co.uk.