The UK professional indemnity insurance market in 2017
The following gives a snapshot of the UK professional indemnity insurance market in 201.
It includes information about the size of the market, product distribution, major insurance companies and examples of larger claims.
- Size of the professional indemnity market
- Example of a major claim
- High risk areas of work
- Product distribution
- Main professions
- Specialist brokers
- Leading insurers
- Main PI centres in the UK
- Estimated premium value of UK market; £ 2.1 billion
- Estimated number of UK policyholders; 1.5 million
- Growth in the self employed and freelance markets coupled with improved online product distribution has fuelled a considerable rise in policyholder numbers in the last 5 years.
- Over 500 different occupation types now purchase professional indemnity insurance. These include the original traditional professions such as solicitors and accountants but also the many other emerging occupations in science, technology and medical.
An example of a large professional negligence claim in the UK; A negligence claim of £ 1.6 billion was filed in 2013 against a major Accountancy firm. The claim was based on the auditing of a sub-prime lender. It was settled in 2015 just before it’s high court hearing and the terms of settlement remain confidential.
Main types of high risk work causing professional indemnity insurance claims (excluding medical malpractice)
- Conveyancing (Legal)
- Taxation (Accountancy)
- Investment / mis-selling (Financial Services)
- Valuation (Property)
- Design (Construction)
Distribution is dominated by specialist insurance brokers. Over 85% of all UK professional indemnity premium is placed through insurance brokers.
Distribution of PI insurance online is the fastest growing sector of the market in terms of policy sales. Number of Google searches; 250,000 annual.
- Solicitors ; £ 300 million
- Accountants ; £ 120 million
- Consulting Engineers ; £ 70 million
- Surveyors / Property ; £ 60 million
- Financial Services ; £ 70 million
- Financial Institutions ; £ 100 million
- Architects ; £ 50 million
- IT ; £ 50 million
- Professional Indemnity Insurance Brokers - Tel 0345 251 4000
- Brunel Professions
- Ntegrity Insurance Solutions
- MGB Insurance Brokers
Largest professional indemnity insurer; Lloyds of London through various syndicates.
Other major insurers include;
- Liberty Mutual
- Manchester Underwriting
- Nexus Underwriting
- Royal and Sun Alliance
- Tokyo Marine HCC
This article is intended for information purposes only. Whilst all care has been taken to ensure the accuracy of the article it is not to be regarded as a substitute for specific advice. © 2018 Professional Indemnity Insurance Brokers Ltd - 0345 251 4000.