For those of us who buy Professional Indemnity Insurance (PII), the last few years have been torrid. The mere mention of PII will result in cries of anguish and raised blood pressure. Most businesses have suffered incredible premium increases and many policyholders have had exclusions applied, limits of Indemnity reduced and the actual basis of their cover altered from any one claim to aggregate. Indeed our own PII premium increase by 300% over 2 years without obvious justification.
The reasons for the hardening of the PII market are well documented. As a whole, insurers had been struggling with the PII market for a number of years and Grenfell was the last straw. Lloyds of London had traditionally been the home of the more complex risks and they decided to withdraw the capacity of a number of syndicates which resulted in a “capacity crunch”: The demand for cover outstripped supply and insurers were reticent to offer terms or at least terms at sensible prices.
We have all endured this predicament for the last few years, however, the constantly turning wheel of the insurance cycle seems to be moving in the right direction; slowly I grant you, but turning nevertheless. Whisper it quietly but we are starting to see a subtle change in insurer attitudes. Premium increases seem to have slowed and in very rare cases reversed and insurers will now have conversations about cover. Don’t expect rates to be slashed and the inflationary pressures in the wider economy are likely to impact, but the extreme increases of recent years seem to be coming to an end!
So, what to do? We adopt an early strategic attitude towards the renewal process. It is essential that you engage insurers early and speak with the markets who are leading the way. As a specialist PII broker, we have the knowledge and market access to ensure we deliver the widest possible cover and the best value for our clients.
Let’s have a conversation – speak to myself or one of our team on 01302 341 344 or 0114 243 9914.
By Andy Morley – Group Managing Director