The Law Council of Australia and a lobby group representing the nine national law firms in Australia are each preparing submissions on the regulation of DOFIs this week.

The Large Law Firm Group (LLFG) represents Freehills, Allens Arthur Robinson, Corrs Chambers Westgarth, DLA Phillips Fox, Clayton Utz, Mallesons Stephen Jaques, Minter Ellison, Deacons and Blake Dawson Waldron.

Most say they purchase their insurance from companies in the US, the UK and Canada but they are concerned insurance will become unaffordable after DOFIs are regulated in Australia.

The Law Council of Australia, which represents law societies and bar associations throughout Australia, met with the LLFG at a meeting in Canberra on Saturday to discuss the issue. Law Council President Tim Bugg told Sunrise Exchange News many of the constituent bodies of the Law Council are concerned by it.

“The constituent bodies of the Law Council [of Australia] have insurance arrangements that vary from state to state and territory to territory but the majority are concerned by this,” Mr Bugg said. “It is the LLFG which is mainly concerned with it, but we’re both preparing submissions this week.”

Mr Bugg says he is expecting the exemptions – yet to be announced – will mean large corporations and sophisticated users of insurance will still be able to buy insurance from DOFIs.

“We are very interested in what the exemptions will be and are expecting it will affect the consumer end of the market more so with car insurance, household and travel insurance,” he said.

The lawyers’ resistance could be seen as a slap in the face to some of their biggest clients – the insurers – which they obviously consider are too expensive or possibly too limited to cover their risk needs. Sunrise Exchange News asked the Insurance Council for the insurers’ response to the legal fraternity’s lobbying, but a spokesman declined to do more than repeat ICA’s stance on the need for a level playing field.

“The Insurance Council welcomed the Government’s recent announcement on DOFIs and considers that all insurers in the Australian market need to be regulated by Australian regulators in the interest of the consumer,” he said.