The environment in which lawyers and solicitors conduct their business is constantly evolving, with the risk landscape forever throwing up new challenges.
This year, Irish lawyers have had to deal with risks associated with new regulation around data and privacy, the growing and complex risks associated with cyber, and let’s not forget about the looming impact of Brexit and how this will change the competitive landscape of lawyers in Ireland – especially in Dublin with more and more firms establishing a presence.
It’s fair to say that a lot has been going on and the landscape is becoming trickier to navigate. In addition to ensuring their clients are prepared for some of these changes, Irish lawyers need to make sure they’re also managing their own exposure to this new normal.
Cyber risk
According to CNA Hardy’s own research, 46% of European business leaders now rank Cyber as their top concern* and it will continue to dominate our headlines as one of the biggest risks facing businesses today, and into 2019. A report published in July this year by the National Cyber Security Centre (NCSC) said legal firms are a prime target for cyber attackers due to the sensitive client information and funds they manage.
The NCSC findings showed that cybercriminals have stolen more than £11m of client money in the 12 months prior to the report being published. What’s more, 60% of legal firms reported attacks in 2017; up from 42% in 2014.
With the increase in cyber-crime against solicitors over the last 24 months, it is vital this is a core consideration for lawyers and solicitors as they consider choosing an appropriate level of PI.
We know cyber criminals specialise in focusing on organisational vulnerabilities, including targeting employees via phishing, or exploiting human error. Firms need to keep on top of the different and changing methods used by cyber criminals.
Straightforward steps that solicitors can take to reduce the risk of financial and data loss through cyber-crime include improving training and staff awareness and enhancing data protection measures. Solicitors should have a plan in place and know how they are going to react in the event of a breach.
They should also practise their breach response procedures regularly since the way in which they react in the first few days after a breach will be an important factor in determining how the various regulators, and indeed insurers, will deal with them.
Data protection
Data protection has been a widespread topic this year. Although it has presented some unexpected consequences around responsibility of data security, which firms should take note of, the much needed clarity on how far this regulation will go, is finally here.
The Data Protection Act 2018 which came into force in May 2018 is part of a trilogy of legislation dealing with Ireland’s eGovernment Strategy 2017-2020. The first is the European Union GDPR, the second is the Data Protection Act and the third is the Data Sharing and Governance Bill 2018.
The last Bill, published in June, facilitates the more efficient use of data in the provision of public services. This is the last piece of the current jigsaw and should make it easier for practitioners when they are seeking information for or about clients from public bodies, for example in road traffic accident cases or medical negligence cases. We anticipate seeing more of this in practice next year, bolstering the assertions made by lawyers and solicitors.
Brexit
As preparation plans for Brexit continue to rumble on, despite the very hazy outcome, more and more US and UK corporate law firms are setting up in Dublin, presenting a challenge for the local firms.
However, notwithstanding this influx, the market for small-to-medium sized practices remains strong. Supported by a growing economy, we see a lot of opportunity for this sector of the legal market and it’s good to see the number of solicitors qualifying in Ireland increasing again. In addition, complaints against solicitors are at a historic low, making the future for the profession very positive and credible.
It is in light of these factors and the need for comprehensive specialist cover that CNA Hardy remains committed to the Irish legal profession as we think about 2019. At a time where the market is seeing a reduction in capacity against a background of complex risks, it is important we make sure our support is visible in this market.
We are therefore proud to partner exclusively with Precision Underwriting Ireland to provide a long term solution for the profession.
By Tina Booth, Underwriting Director, CNA Hardy
*CNA Hardy Risk & Confidence Survey Spring 2018 edition – download it here