Professional Indemnity Insurance – 2025 Market Review
PROFESSIONAL INDEMNITY INSURANCE - MARKET REVIEW
Executive Summary
Over the last three months of 2025 the UK Professional Indemnity (PI) insurance market continued its strongest softening phase in nearly a decade:
- Rates reduced by 25–30% compared with 2024 for many professional services and design-led risks.
- Capacity increased driven by the expansion of MGAs and insurers keen to deploy PI capital.
- Coverage broadened with 'any one claim' limits, enhanced fire-safety clauses and softer terms returning.
- Competition between Insurers is at its highest since before the 2017–2020 'hard' insurance market.
Market Conditions
Market commentary at the end of 2025 confirmed significant premium reductions in the professional indemnity insurance market compared with 2024. Clients with good risk profiles frequently achieving increased levels of cover or premium reductions, or both. Brokers reported more underwriters chasing a fairly static number of potential customers, resulting in:
- Lower base rates.
- More negotiating room.
- Higher acceptance of bespoke endorsements.
This softening is broad-based but felt strongest in the following industries:
- Accountants.
- Architects / Surveyors / Engineers.
- Technology & digital service firms.
- Design & Construct contractors (D&C).
Appetite and Capacity
Several PI-focused MGAs entered or expanded in the last quarter of 2025, leading to more attractive pricing, faster turnaround times for brokers and a renewed appetite for the “borderline” professions and work-types previously avoided.
Carrier reports highlight Underwriters pushing to take larger shares on the risks they really want and an increased willingness to offer broader cover such as 'Any One Claim' limits and wider fire-safety / cladding coverage. There is also a relaxation of hard-market exclusions where good controls and history are demonstrated.
Sector-Specific Comments
Solicitors
- Pricing stable-to-soft across most bands.
- Increased cover options for conveyancing-heavy firms due to more competitive capacity.
- Wording improvements: cyber carve-outs clarified, dishonesty clauses varied more widely.
Surveyors, Architects and Property Professionals
- Very favourable rating conditions.
- Fire-safety appetite widening—particularly relevant after years of post-Grenfell retrenchment.
- Good ability to upgrade limits cost-effectively.
Technology / Digital / Consultants
- Strong competition from MGAs and London markets.
- Broad form wordings available, even for new / start-up businesses.
- Combination packages for PI and Cyber Insurance more competitively priced.
Conclusion
The last three months of 2025 confirmed that we are currently seeing the softest professional indemnity market in many years.
DISCLAIMER This article is intended for information purposes only. Whilst all care has been taken to ensure the accuracy at the time of writing, it is not a reliable substitute for specific insurance advice. For advice about this topic, please contact us or your current brokers. This guidance note shall not be reproduced in any form without our prior permission. © Professional Indemnity Insurance Brokers Ltd