ABC Insurance has fired off a strongly worded letter as it continues its battle to enter the NSW lawyers’ professional indemnity market, challenging the monopoly held by Law Society-owned Lawcover. 

The would-be new entrant says it has a PI product ready for the 2026-27 practising year, which begins in July. 

Liberty Mutual-backed ABC announced in 2024 that it wanted to offer solicitors and law firms their mandatory PI cover from that year, but it has been stymied by the NSW Attorney-General refusing to allow it into the market. 

The Attorney-General has approved Lawcover’s application to provide PI cover each year, saying although competition can drive premium reductions and policy innovation, the solicitors’ PI market has features that may impede the full benefits of competition. 

ABC says its policy provides broader coverage than Lawcover’s and its premiums this year would have been 35%-45% lower on average. 

It says firms that have offices interstate have a choice of insurers but the 70% that operate in NSW only must use Lawcover.  

ABC wrote to Law Society councillors this month saying its policy meets NSW legislative requirements and as an “approved insurance policy” should not need the Attorney-General’s approval. It has asked Attorney-General Michael Daley not to exercise his power to approve solicitors’ PI cover. 

“We are writing to each of you to express our deep concern, and the concern of many solicitors who communicate with us, at the council’s aggressive campaign to maintain the Law Society’s monopoly,” the letter, seen by insuranceNEWS.com.au, says.

“Your anti-competitive conduct risks undermining the integrity of the Law Society itself and bringing the profession into disrepute. 

“We urge the Council of the Law Society to immediately take steps to appropriately eliminate its conflict of interest and end its anti-competitive campaign, to ensure that free and fair competition is allowed to flourish.” 

A spokesperson for the society told insuranceNEWS.com.au the key issues have been settled by litigation. 

In 2024 the NSW Court of Appeal ruled the Attorney-General had the power to approve both the PI policy and insurer. 

When ABC first applied to offer cover, the Department of Communities and Justice commissioned an actuarial assessment from Deloitte on the impact.

Deloitte found the market was working relatively effectively, and premiums were affordable, stable, accessible and comparable with other jurisdictions. Introducing competition might lead to lower premiums but also increase risk, although this could be mitigated. 

Lawcover recorded gross written premium of $108 million in 2025 and made an underwriting loss of $11.6 million. Its net profit was $9.9 million.

From the latest Insurance News magazine: Three retiring insurance veterans look back on their careers, and offer some advice for those who will follow them