The dramatic change in professional indemnity market conditions started in 2019 and has continued to accelerate into 2020. This acceleration has made it increasingly difficult to predict market conditions, in respect of pricing, coverage, and capacity, even in the short to medium term. COVID-19 and the associated global economic downturn are compounding the hardening market and increasing uncertainty.
As we head into the second half of 2020, pricing adequacy continues to be at the forefront of insurers’ underwriting approach. While the global insurance market continues to be well capitalised, the focus has shifted to long-term profitability and portfolio balance. In this report we look closely at how the market continues to change with respect to professional indemnity, how insurers are responding and the impact of COVID-19 on insurance market capital.