Professional Indemnity Insurance Market Trends and Analysis for Q3 2018
The Professional Indemnity (PI) insurance market is showing early signs of hardening. The latest Australian Prudential Regulation Authority (APRA) statistics show a deterioration in claims development.
The heightened directors and officers securities class action environment in Australia has drawn focus from insurers’ global head offices. As a result, PI is either under scrutiny, or seen as a class to grow and utilise to diversify insurer financial lines portfolios. This combined with the deteriorating PI loss ratios, trusted and well-established PI insurers are pushing rate; and new inexperienced underwriters, often with a lack of product, are trying to buy market share.