GUIDANCE ON PROFESSIONAL INDEMNITY INSURANCE FROM OAMPS

STATE OF THE MARKET

Karl Jones, Account Director, OAMPS Hazardous Industries

Many of you buying Professional Indemnity (PI) insurance will have found that premiums have increased over the past 2-3 years, and that many insurers have reduced the primary limit of indemnity on offer, while reducing deductibles – quite the triple whammy!

This situation follows well over a decade where the UK PI market has been a ‘soft’ market, where capacity for PI cover far outweighed demand, with some providers believing there were profitable opportunities in the PI insurance sector.

As more insurers entered the PI market, competition inevitably increased; great news for policyholders, as insurers cut premiums and broadened cover to retain existing clients and win new business.

This approach began reversing when a reappraisal of underwriting strategies by Lloyd’s of London led to a shift in underwriting attitudes.

As the market got to grips with these changes, the Grenfell Tower disaster struck in June 2017, leading many UK insurers to have concerns about their exposure to large PI claims, and deciding they would no longer write cover, while the remainder are restricting cover – meaning less capacity in the market.

So for the first time since 2001, premiums are going up while cover on certain types of business is contracting in terms of what is offered.

OAMPS can offer access to PI terms, and are happy to talk to any UK and Ireland Spill Association members who has had challenges with their PI insurance to see if we’re able to help..

FOR MORE DETAILS CONTACT KARL AS FOLLOWS:

E: Karl.Jones@oamps.co.uk T: 01372 869754 M: 07729 442 461