by LAWPRO

Message from the Chair

Lawyers in Ontario in 2025 encountered what could be described as an unpredictable environment including transformational changes in technology, political upheaval and social unrest. When the environment in which we work becomes less predictable, insurance tends tobecome even more valuable.

LAWPRO works to keep premiums as low as possible but its mandate requires that it meet the costs of claims and keep capital on hand to prepare for unknowable risks as required by our regulator. One of the best ways LAWPRO provides a haven for Ontario lawyers is through its financial stability.

This stability is tested regularly and can be seen in the Financial Statements in this Report and is confirmed by our regulators and independent analysts. A.M. Best, a leading global credit rating agency specializing in the insurance industry, reaffirmed the company’s Financial Strength Rating of “A” with a “Stable” Outlook.

The year-end Minimum Capital Test result, which is an objective measure of an insurance company’s solvency, of 249% demonstrates that LAWPRO maintains sufficient assets to meet its present and future obligations. This assurance is gratifying in light of the constant market, credit, and operational risks that the company faces.

LAWPRO insures more lawyers each year and has maintained the same base premium as in 2024. Premiums are set based on an analysis of trends and do not react to one-year observations.

Our open claims count was the highest ever – 5,473 claims – with 3,940 new claims reported in 2025. The number of claims and costs have risen steadily over the last three years as the company has watched to see if this increase is a trend or just the usual variation. It now appears to be an ongoing trend which may lead to the need for a premium increase.

Litigation and real estate continued to be the areas with the highest number of claims. Inadequate investigation claims continue to grow steadily. This cause of claims typically relates to lawyers who have not uncovered all the facts or developed a sufficient understanding of a client’s circumstances and this in turn may reflect the increasing pace of society and client expectations.

I would like to take a moment to acknowledge the role of TitlePLUS. As the only wholly owned Canadian title insurer, the program’s importance to the Ontario real estate bar was particularly highlighted this year. The vital role of real estate lawyers in the application of accurate and fair transactions continues to be supported by TitlePLUS title insurance. TitlePLUS saw premiumgrowth of over 10% in 2025 despite a challenging real estate environment.

The Law Society of Ontario and its members are well served by efficient and accountable insurance programs such as LAWPRO’s.

Message from the President & CEO

Specializing in insurance for the legal profession means LAWPRO has a deep understanding of claims trends and is able to recognize and respond to emerging risks including sophisticated mortgage frauds, cybercrime, new technologies and the evolving nature of legal work.

While LAWPRO maintains an intimate understanding of the role of and challenges faced by Ontario lawyers, can also focus on broader insurance industry issues including solvency and effective claims management.

Our team of claims professionals are ready to help insureds in some of their most stressful moments. 2025 saw a new high in open claims but LAWPRO was able to shorten the life cycle and close claims more quickly. LAWPRO collaborates with outside counsel and to nurture connections with key stakeholders, associations, and educational institutions.

Our technology transformation is moving forward steadily, and each year sees additions and refinements. Keeping up with customer and employee technology expectations is an ongoing pursuit that all companies face.

The benefits of technology are part of our everyday life, but the threats of technology in the wrong hands are also evident each day. Fraud-related claims are growing significantly in frequency and cost. We see many types of frauds, including wire transfers, identify theft and fake cheques. Most of the frauds we see start with social engineering, often via phishing or a phone call. It is everyone’s responsibility to take steps to learn how they may be targeted and to implement as many safety measures as are affordable and feasible. I encourage everyone to take the time to regularly update themselves and their staff about cybersecurity and anti-fraud techniques. We have resources available at practicepro.ca/fraud and we will continue to issue alerts and offer continuing professional development sessions to help keep you informed.

Before paying out funds in any matter, lawyers should verify that instructions sent by email are legitimate, through direct phone or in-person contact with the party providing the instructions. Do not rely solely on email communication within your firm to confirm the secondary verification. Be wary of banks phoning you our of the blue and make your own inquiries by independent means before providing any login information.

Our accomplishments in 2025 serve the Bar in a variety of ways:

  • 3,823 claims files closed – an all time high
  • 71 live risk prevention presentations to associations, lawyers, and law schools
  • 4 full-day LAWPRO Roadshows across the province
  • New TitlePLUS Market Value Endorsement offering
  • 36,681 calls handled by our Customer Service Department

I want to thank LAWPRO employees, our Board of Directors, external counsel, and members of the Ontario Bar for their continued support of LAWPRO as an independent insurance company that offers comprehensive professional liability insurance in a financially responsible and accountable way while keeping the cost as low as possible.