Exhibit 23.1

                     CONSENT OF INDEPENDENT AUDITORS

The Board of Directors and Shareholders
RLI Corp.:

We consent to incorporation by reference in the registration statement on 
Form S-8 (No. 333-1637) of RLI Corp. of our reports dated January 21, 1998, 
relating to the consolidated balance sheets of RLI Corp. and subsidiaries as 
of December 31, 1997 and 1996, and the related consolidated statements of 
earnings and comprehensive earnings, shareholders' equity, and cash flows for 
each of the years in the three-year period ended December 31, 1997, and all 
related schedules, which reports are incorporated by reference in, or appear 
in (with respect to the schedules), the 1997 annual report on Form 10-K of 
RLI Corp.

KPMG Peat Marwick LLP



Chicago, Illinois
March 20, 1998


                                       36