The professional indemnity market is heavily influenced by the state of the economy, high levels of competition, and new legislation, making it a very challenging market. This report analyzes these factors and provides insight into the effects on the market both in the short and the long term. The report draws extensively upon Verdict Financial's 2014 SME Insurance Survey.
Use this report to ensure you are ready for the changing legislation facing this market.
The report offers insight into the trends in premium rates, product penetration, GWP, loss ratios, and claims.
Map your long-term strategy against future developments in the market and forecast GWP to 2018.
How did the market fare over the last two years in terms of GWP, combined operating ratio, loss ratio, expense ratio, and claims?
What happened in the main professions covered by professional indemnity and how are legislation and the economy affecting their evolution?
Which professions see the most claims?
Overall economic growth prior to 2013 was erratic, with a bumpy period consisting of several quarters of contraction between 2010 and 2012. A more stable and healthy UK economy will be beneficial for the professional indemnity market.
Solicitors and barristers still make up the majority of litigation cases, especially within the area of conveyancing claims, followed by members of other professions.
Accountants represent one of the largest groups of professionals in need of cover in the UK with over 327,000 members. It is also one of the professions recording the strongest growth in members, especially between 2012 and 2013, meaning the need for professional indemnity cover in this space is increasing.