Menu Search through site content What are you looking for?
Menu
12 July 2021

London Market Professional Indemnity Report July 2021

12 July 2021 Insurance & Reinsurance

Introduction

London professional indemnity market remains confident in the face of enduring challenges

Download the full report here

The report reveals that confidence is high and appetite strong in the London professional indemnity (PI) market despite a trinity of challenges facing the industry. With 94% of insurers planning to write the same or more business in the next 12 months, recession, cyber threat from remote working and continued regulatory oversight are top of the list of the industry’s concerns.

  • COVID: 68% of insurers see an increased threat associated with weakened supervision and 58% expect greater privacy, cyber and ransomware exposures associated with COVID-19
  • Claims: 95% of insurers expect a greater number of claims in the next two years with 68% expecting them to be more severe
  • Market appetite: 48% of insurers are planning to write the same level of business in the next 12 months with 46% expecting to write more
  • Pricing: 100% of buyers and 99% of insurers expect rates to rise
  • Coverage: 94% are expecting to offer more restricted cover for specific perils in the coming year and 46% to see a reduction of non-core PI covers
  • Market dynamics: 83% of insurers expect market change in the form of new entrants, exits and consolidation. 39% expect more business to be written through MGAs, binders and delegated authority over the next two years.

Simon Konsta, Partner, Clyde & Co LLP comments:

About the report

Produced

12 July 2021

Location:

Africa, Americas, Asia Pacific, Middle East, UK & Europe

Written by:

Simon Konsta

Simon Konsta

Partner

Read time

10 mins

Download
About the report

Produced

12 July 2021

Location:

Africa, Americas, Asia Pacific, Middle East, UK & Europe

Written by:

Simon Konsta

Simon Konsta

Partner

Read time

10

Download

About the report

Clyde & Co conducted an online survey of 122 targeted London market insurance professionals and buyers during May 2021. The Clyde & Co Global Professional Liability team surveyed the PI insurance community to find out what would help the industry plan to overcome the hurdles ahead in terms of wordings, cover, regulatory intervention, and the likely impact on deals in this space. A mix of insurance professionals were canvassed – spanning underwriting, broking and claims – as well as a smaller, selected group of insurance buyers for their take on developments in the PI market.

End

You might be interested in...