Premium growth in the professional indemnity insurance
category remained soft during the review period (2008–2012), and declined at a
compound annual growth rate (CAGR) of 0.20%, as an increase in professional
negligence court cases and the volume of registered professionals requiring cover
was outweighed by the recessionary economic backdrop. Premiums rose by 2.8% in
2012, to a total of GBP2.05 billion, while a further GBP0.60 billion is
estimated to have been underwritten by syndicates on the Lloyd’s market.
Despite soft premium growth, the availability of
professional indemnity insurance worsened, particularly for surveyors, small
firms of solicitors and independent financial advisers (IFAs). For solicitors,
the broad scope of insurance coverage requirements stipulated by the Solicitors
Regulation Authority exposes insurers to a high level of risk, while in the
surveyor and IFA sub-categories, insurers reduced capacity due to growing
apprehension over rising claims related to property valuations and failed
investments.
The professional indemnity insurance category is
projected to generate GBP2.33 billion in premiums by 2017 and premiums are
forecast to rise at a CAGR of 2.57% over the forecast period (2013–2017), with
growth expected on an annual basis. An expected increase in the number of
professionals subject to compulsory professional indemnity insurance
requirements and insurers expanding into sectors with voluntary insurance
needs, such as engineering, information technology and marketing will act as
the key growth drivers. Marked improvements in the UK’s economic conditions as
the country enters a stronger recovery phase will provide a further impetus for
growth in demand.
Professional bodies such as the Solicitors Regulation
Authority (SRA), the Royal Institute of Chartered Surveyors (RICS) and the
Association of Professional Financial Advisers (APFA) have expressed dismay at
members’ ongoing struggles to obtain professional indemnity cover. Large
insurers withdrew policies for these clients during the review period, citing
unsustainable risk exposure as the reason. The SRA compounded access issues
through its abolition of a communal risks pool in 2013, which resulted in the
closure of 136 firms unable to obtain mandatory insurance coverage.
Stronger economic growth over the forecast period is
expected to ease litigation and reduce claims costs. Nevertheless, the six-year
statute of limitations means insurers remain liable for negligent acts which
occurred during the recession. A further risk to the outlook of claims stems
from the Retail Distribution Review (RDR) increasing the exposure of
whole-of-market advisers to rarer investment instruments, and the April 2013
Jackson reforms influencing compensation levels negotiated by lawyers.
- The report provides market analysis, information and insights into the UK professional indemnity insurance business.
- It provides a snapshot of the market's size and segmentation.
- It offers a comprehensive analysis of claims, drivers and market outlook.
- It provides an analysis of distribution channels.
- It summarises deals, news and regulatory developments
Scope
- This report provides market analysis, information and insights into the UK professional indemnity insurance business
- It provides a snapshot of the market size
- It analyses drivers and the outlook for the market
- It provides information on distribution channels
- It covers deals, news and regulatory developments
Reasons To Buy
- Gain an understanding of the UK professional indemnity insurance market
- Learn about the performance of market drivers and distribution channels
- Understand the competitive landscape in terms of performance, profitability and product innovation
- Find out more on key deals and recent developments in the market
Key Highlights
- Muted growth was recorded during 2008–2012
- Despite soft prices, insurance was difficult to obtain
- The category will benefit from favorable factors during the forecast period
- Capacity for higher-risk groups remains an issue
- Claims will be subject to upside pressures
Spanning
over 61 pages, 35 Tables and 15 Figures “Professional
Indemnity Insurance in the UK, Key Trends and Opportunities to 2017” report
provide Executive Summary, Market Analysis, Competitive Landscape, Porter’s
Five Forces Analysis, Deals, News, Regulation and Compliance, Macroeconomic
Backdrop, Company Profiles, Statistics, Appendix. This Report cover 10
companies - ACE European Group Ltd, AIG Europe Ltd, AmTrust Europe Ltd, Chubb
Insurance Company of Europe SE, CNA Insurance Company Ltd, HCC International
Insurance Company Plc, Hiscox Ltd, QBE Insurance (Europe) Ltd, Royal & Sun
Alliance Insurance Plc, XL Group Plc.
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