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 Broker Surveys, as well as additional in-depth interviews with industry leaders.
Following an intense period of market correction, growth in the UK professional indemnity insurance (PII) market stabilized to 3.1% in 2023. With improved profitability, capacity is returning to the market, both in the form of new entrants and existing insurers with renewed appetite - some of which have ambitious growth targets. Premium rates are therefore now stable or declining and market growth is forecast to be much slower to 2028. However, market conditions remain very profession-specific and are affected by the size and profile of risk. Professional indemnity underwriters also continue to traverse significant economic uncertainties and forces that could have a significant impact on the future course of the market.
Following an intense period of market correction, growth in the UK professional indemnity insurance (PII) market stabilized to 3.1% in 2023. With improved profitability, capacity is returning to the market, both in the form of new entrants and existing insurers with renewed appetite - some of which have ambitious growth targets. Premium rates are therefore now stable or declining and market growth is forecast to be much slower to 2028. However, market conditions remain very profession-specific and are affected by the size and profile of risk. Professional indemnity underwriters also continue to traverse significant economic uncertainties and forces that could have a significant impact on the future course of the market.
Scope
- The UK PII market was worth GBP3.3 billion in 2023, with slower growth of 3.1% driven by changing market dynamics, counterbalanced by growth in turnover among traditional professions.
- PII penetration rates are recovering after a slight dip in the wake of COVID-19 pressures and the peak of the hard market, particularly among sole traders, micro enterprises, and those not providing professional advice.
- However, SMEs are re-evaluating their PII holdings as a result of cost pressures; a quarter of medium-sized companies and 16.3% of small companies are currently considering or have considered canceling their PII policy.
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 shifting market conditions have affected SME switching and renewal behaviors.
- Discover the SME market shares of the leading professional indemnity insurers and understand broker preferences.
- Learn about key distribution trends in the market.
Table of Contents
1. Executive Summary
2. Market Dynamics
3. Competitive Landscape
4. Distribution
5. Future of the Market
6. Appendix
List of Tables
List of Figures
