Important update: Parliamentary Inquiry into NSW solicitors’ professional indemnity insurance arrangements
2 September 2026
There have been significant recent developments concerning professional indemnity insurance arrangements for NSW solicitors.
On 5 August 2026, the NSW Legislative Council voted to establish a Select Committee to inquire into arrangements governing professional indemnity insurance for NSW solicitors. The inquiry follows parliamentary scrutiny, Budget Estimates hearings and the production of documents under Standing Order 52.
Members of the Legislative Council from across the political spectrum have raised questions regarding competition, governance, conflicts of interest and the process by which decisions affecting the professional indemnity insurance market have been made. The inquiry will provide an opportunity for those issues to be examined publicly.
For many solicitors, particularly smaller law practices operating solely in NSW, the outcome of this process may have significant long-term implications.
Why this matters
For approximately 70% of NSW solicitors in private practise, there is currently only one insurer that can practically provide the compulsory professional indemnity insurance required to practise.
Members of Parliament have questioned whether the current arrangements deliver the best outcomes for solicitors, their clients and the broader public.
What you can do
If you believe solicitors should have a greater voice in this debate, we encourage you to consider taking the following steps:
1. Support efforts to requisition a meeting of the Law Society
A growing number of solicitors are seeking to requisition a general meeting of the Law Society of NSW to allow members of the profession to consider motions concerning the Law Society’s role in the current arrangements.
Further information is available from the Insurance Choice NSW website at pichoice.com.au
2. Make your views known to the Parliamentary Inquiry
The Select Committee has been established specifically to examine these issues.
We encourage solicitors to participate in the process and make their views known by writing to the Legislative Council of NSW Select Committee:
Potential for competition reforms regarding solicitors’ professional indemnity insurance.
You could make a submission (by 15 September 2026) or contact the members directly.
Visit the Select Committee's website at
parliament.nsw.gov.au for more information and to take action.
A critical moment
Whatever your personal view of the issues, this is likely to be one of the most significant reviews of solicitors’ professional indemnity insurance arrangements in many years.
If members of the profession wish to influence the future direction of those arrangements, now is the time to engage.
We will continue to provide updates regarding developments, relevant documents and opportunities for solicitors to have their voices heard.
Additional Resources are also available on our website, including our previous notices and updates, media articles, NSW Legislative Council proceedings, correspondence with the Attorney General and Councillors of the Law Society of NSW, links to government pages, social sites, and more.
Also refer here for further information on making a submission to the Parliamentary Inquiry.