The 2020 professional indemnity insurance market was one of the most challenging insurance markets professional services companies have faced, with many insurers taking corrective action to improve the profitability of their portfolios, leading to significant premium increases.
2021 has seen a continued focus on underwriting performance and portfolio management, and pricing increases continue to be sought by insurers albeit at a lesser rate than 2020 for many professions.
We are seeing some green shoots with a small amount of new capacity entering off the back of more insurer-friendly premium conditions.
The Professional Indemnity market however, has not been immune to the unprecedented loss levels associated with the hard insurance market. Current premium increases are yet to offset the increase in losses.
Concerns around increases in inflationary factors have also contributed to insurers being reluctant to offer large insurance limits and pushing for higher deductibles.
The 2020 experience and hard insurance market has demonstrated that there is no room for complacency, and a new approach to engaging with insurers is required.
Read more in our 2021 Professional Indemnity Insurance Market Insights report.