United Kingdom (UK) Professional Indemnity Insurance Market Analysis and Forecast, 2021-2025

After several years of significant premium rate rises in the UK professional indemnity insurance (PII) market, increases appear to be stabilizing. However, market conditions are very profession-specific and are also cut by size of risk. Professional indemnity underwriters are traversing the economic uncertainties and impacts of the COVID-19 pandemic, which could have a significant impact on the future course of the market. While claims are emerging, there will be a lag before the true impact of the pandemic is known, and claims inflation and severity are both predicted to continue rising over the next few years. There are signs of capacity returning to the market, but insurer growth will be cautious. Market growth is therefore forecast to stabilize until 2025.

This report provides in-depth analysis of the UK professional indemnity insurance market. It looks at market size as well as changes in premiums, claims, distribution, regulation, and future opportunities, including our proprietary GWP forecasts and the impact of COVID-19. The report uses results from our annual UK SME Insurance and UK Commercial Insurance Brokers Surveys, as well as additional in-depth interviews with industry leaders.

Scope

• We estimate the UK PII market to be worth £2.9 billion in 2021, with growth driven by premium rate rises across most market sectors. While premium adjustments will continue during 2022, it is expected that by the end of the year flatter rates will return.
• PII penetration rates have fallen among micro enterprises and those not providing professional advice, as coronavirus pressures mean SMEs are re-evaluating their insurance holdings.
• Professional indemnity insurers are already dealing with coronavirus-linked claims. While 5.9% of SMEs have made a successful claim on their PII policy as a result of the COVID-19 pandemic, the figures suggest that currently around four in 10 claims are being rejected.
• AXA is the SME market leader with a 10.0% market share, while Hiscox and Tokio Marine HCC are the most favored insurers among brokers for PII placement.

Reasons to Buy

• Understand the current and forecast size and growth of the UK professional indemnity insurance market, along with sector-specific drivers
• Gain insight into how the pandemic has impacted claims and product uptake
• See what impact the hard market has had on SME switching and renewal behaviors
• Benefit from the publisher’s UK SME Insurance and UK Commercial Insurance Broker Surveys, along with in-depth interviews with industry participants
• Get access to professional indemnity insurer SME market shares and understand broker preferences
• Understand professional indemnity insurance distribution trends