Market update – Professional Indemnity

The market continues to harden. Claims statistics suggest that this class, underwritten at current premium rates, is unprofitable.

Further withdrawals from Lloyd’s of London means that placements are returning to be underwritten in Australia. That is certainly the case, and in our experience, at much higher rates and far narrower cover.

The greatest impact has been to:

1. developers and principal contractors – rate increases between 25-50%
2. design consultants and building professionals – rate increases between 25-50%
3. financial services licensees – rates increasing 25-35%
4. property valuers – rate increases between 25-50%
5. solicitors – most relevantly top up insurance at 30 June 2020 saw “rates per 1 million” of cover increase between 30-100% (depending on attachment point).

Please refer to our article:

• Professional services – risks and insurance issues from COVID-19

See our general market update here