The pressure is still on for NSW’s troubled LawCover system – the sole provider of PI insurance for the state’s lawyers. The monopoly insurer, which is owned by the NSW Law Society, earned about $18 million a year in HIH commissions.

MLC Peter Breen’s attempt to have a parliamentary investigation into possible links between HIH and senior figures in the Law Society failed when Attorney-General Bob Debus said the accusations should be considered by the HIH royal commission.

But four more major national law firms have moved their PI cover to Victoria as LawCover struggles to set up new PI policies with American Re. Blake Dawson Waldron, Corrs Chambers Westgarth, Mallesons Stephen Jacques and Sparke Helmore have all moved their PI cover to Victoria. Allen Allen & Hemsley ­– which recently finalised its merger with Arthur Robinson & Hedderwicks – moved its cover to Victoria several months ago. American Re is understood to have finalised a PI cover deal with the NSW Law Society for about $60 million.