The State of Professional Indemnity Market in The UK Calls for Dynamic Insurance Brokers
Professional Indemnity (PI) is an insurance cover that protects against losses that could come from legal action against a professional should one has been deemed to be found to be negligent, or giving wrong advice through error or omission. This could also include slander, libel or breach of contract depending on your insurer. PI cover can be important for businesses that provide advice, recommendations, designs or represent others’ needs.
The commonly known professions that buy huge amounts of PI cover include:
- Healthcare and Homecare
- Construction and Design
- Surveyors / Property
- Financial Services
- Financial Institutions
- Tech Companies
According to Sikhulisiwe Ncube, Financial Lines Product Lead of Maksure Risk Solutions, “The demand for PI cover is driven by two major factors which are; the need to satisfy business trade requirements as well as the need to protect businesses against the devastating effects of legal action against a professional should there be negligence, wrongful advice and error or omission”.
State of PI Market in UK
Insurance experts have recognised that the UK market for PI has hardened in recent years, making it difficult for some businesses to find adequate cover at reasonable prices. The Grenfell tragedy and Carillion’s collapse made conditions for PI in the UK difficult, with many insurers deciding to no longer offer PI cover and focus on other products.
An insurance market is considered hardened when a cover is in high demand but suppliers are low. Major disasters, unexpected insolvencies and broken supply chains have contributed to a large increase in PI claims. This increased volume of claims has meant that insurers have had to pay a hefty price, with a limited financial supply. Experts have estimated that because of this, half a dozen insurers have exited the PI market in the last year alone, however, no new insurers have taken their place, nor are any expected to in the near future.
PI Market Calls for Dynamic Brokers
In a hardening PI market, insurance buyers require dynamic insurance and reinsurance brokers to be able to negotiate best insurance coverage and reasonable insurance premiums. Maksure Risk Solutions is an independent specialist insurance and reinsurance broker in the PI market operating in UK and selected African markets.
“We are finding that the market is hardening and underwriters require more quality data to make their underwriting decisions. We are happy that our market knowledge and perseverance to find the best solution for our client makes us unique to be able to find the right insurer and reinsurers for our clients at the right terms and conditions,” added Sikhulisiwe Ncube.
In order to get the best PI cover for your business:
Selecting a Specialist Broker: Get in touch with us at Maksure Risk Solutions to talk about what is it that you need from your PI cover. As a broker, we can advise you on the cover that is best for your business and can usually offer this at a more cost-effective solution as we negotiate with a number of specialist insurers in the market.
Start your renewal research early: Know when your renewal is due so that you can secure the best cover when the date comes around. Being prepared with your renewal is very important in a hardened insurance market. Make sure that you have any documentation that you may need on hand and be prepared to answer more questions than you have done previously.
Risk management: Your risk management approach will be vital information to your insurer to show that you are a low risk business when it comes to PI. Invest in risk management processes and be prepared to give documentation to your broker or insurer when the time comes to renew. Risk management documentation should highlight:
- Risk analysis activity
- Cash flow processes.
- Robust contracts that clearly outline the responsibilities of all parties.
- An effective supply chain management process that outlines your relationship with your suppler, due diligence checks and liability agreements.
Why Choose Maksure Risk Solutions:
- You’ll be assigned a dedicated client manager, who will be there to assist you from start to finish throughout your journey.
- We have a huge network of specialist insurers that we negotiate and secure your PI cover from.
- Our experience as a broker means we can be confident in our ability to arrange your insurance.
- We consider ourselves specialists in your sector – we understand the industry and appreciate the challenges you may face on a daily basis.
- We have a wealth of experience – cumulatively our team has over 20 years’ experience.
For more information regarding our Professional Indemnity Covers, contact our specialist PI team on Tel +44 20 8187 5262 or WhatsApp +44 73 9885 7206 or Email firstname.lastname@example.org.
About Maksure Risk Solutions
Maksure Risk Solutions is an Afro-Global independent specialist insurance and reinsurance broker with business footprint in Africa, Asia, East & Western Europe, South America and the Caribbean. We provide innovative and tailor-made risk solutions in Insurance and Reinsurance as well as Risk Financing and Actuarial Consulting geared towards capital management and strengthening our client’s balance sheet. Maksure is also one of the major players in Captive Management (Establishment & Management) in South Africa, Mauritius, Bermuda and various other jurisdictions. We have access into the Lloyds of London with a deep understanding of African markets. Our global nature ensures that our clients access quality capacity as well as some of the world’s latest thinking and solutions.