Professional Indemnity Insurance in the UK, Key Trends and Opportunities to 2017

Published: Mar, 2014 | Pages: 61 | Publisher: Timetric
Industry: Insurance | Report Format: Electronic (PDF)


Synopsis
 The report provides market analysis, information and insights into the UK professional indemnity insurance business.
It provides a snapshot of the market's size and segmentation.
It offers a comprehensive analysis of claims, drivers and market outlook.
It provides an analysis of distribution channels.
It summarises deals, news and regulatory developments 

Summary
Premium growth in the professional indemnity insurance category remained soft during the review period (2008-2012), and declined at a compound annual growth rate (CAGR) of 0.20%, as an increase in professional negligence court cases and the volume of registered professionals requiring cover was outweighed by the recessionary economic backdrop. Premiums rose by 2.8% in 2012, to a total of GBP2.05 billion, while a further GBP0.60 billion is estimated to have been underwritten by syndicates on the Lloyd's market. 
Despite soft premium growth, the availability of professional indemnity insurance worsened, particularly for surveyors, small firms of solicitors and independent financial advisers (IFAs). For solicitors, the broad scope of insurance coverage requirements stipulated by the Solicitors Regulation Authority exposes insurers to a high level of risk, while in the surveyor and IFA sub-categories, insurers reduced capacity due to growing apprehension over rising claims related to property valuations and failed investments.  
The professional indemnity insurance category is projected to generate GBP2.33 billion in premiums by 2017 and premiums are forecast to rise at a CAGR of 2.57% over the forecast period (2013-2017), with growth expected on an annual basis. An expected increase in the number of professionals subject to compulsory professional indemnity insurance requirements and insurers expanding into sectors with voluntary insurance needs, such as engineering, information technology and marketing will act as the key growth drivers. Marked improvements in the UK's economic conditions as the country enters a stronger recovery phase will provide a further impetus for growth in demand. 
Professional bodies such as the Solicitors Regulation Authority (SRA), the Royal Institute of Chartered Surveyors (RICS) and the Association of Professional Financial Advisers (APFA) have expressed dismay at members' ongoing struggles to obtain professional indemnity cover. Large insurers withdrew policies for these clients during the review period, citing unsustainable risk exposure as the reason. The SRA compounded access issues through its abolition of a communal risks pool in 2013, which resulted in the closure of 136 firms unable to obtain mandatory insurance coverage. 
Stronger economic growth over the forecast period is expected to ease litigation and reduce claims costs. Nevertheless, the six-year statute of limitations means insurers remain liable for negligent acts which occurred during the recession. A further risk to the outlook of claims stems from the Retail Distribution Review (RDR) increasing the exposure of whole-of-market advisers to rarer investment instruments, and the April 2013 Jackson reforms influencing compensation levels negotiated by lawyers.  
Scope
 This report provides market analysis, information and insights into the UK professional indemnity insurance business
It provides a snapshot of the market size 
It analyses drivers and the outlook for the market 
It provides information on distribution channels
It covers deals, news and regulatory developments  
Reason To Buy
 Gain an understanding of the UK professional indemnity insurance market
Learn about the performance of market drivers and distribution channels
Understand the competitive landscape in terms of performance, profitability and product innovation
Find out more on key deals and recent developments in the market 
  
Key Highlights
 Muted growth was recorded during 2008-2012
Despite soft prices, insurance was difficult to obtain
The category will benefit from favorable factors during the forecast period
Capacity for higher-risk groups remains an issue
Claims will be subject to upside pressures

 1 Executive Summary 
2 Introduction 
2.1 What is this Report About? 
2.2 Definitions 
2.3 Methodology 
3 Market Alysis 
3.1 Market Size 
3.1.1 Penetration and density
3.2 Claims
3.2.1 Claims review
3.2.2 Claims outlook
3.3 Market Drivers
3.4 Market Outlook
3.5 Distribution Channels
3.5.1 Distribution outlook
4 Competitive Landscape 
4.1 Investment Returns
4.2 Review - The Best Performers of 2012
4.3 Product Innovation
4.4 Professiol Indemnity Insurance - SWOT Alysis
5 Porter's Five Forces Alysis 
5.1 Bargaining Power of Suppliers: Low 
5.2 Bargaining Power of Buyers: Low 
5.3 Barriers to Entry: Medium to High
5.4 Intensity of Rivalry: Medium
5.5 Threat of Substitution: Low 
6 Deals 
6.1 Law Society Venture for Small Legal Firms
6.2 Aon and QBE Absorb Capacity
6.3 JLT Renews Deal with AmTrust
6.4 Willis Expands its Professiol Indemnity Broker Network
7 News 
7.1 Royal College of Nurses Closes Indemnity Loophole
7.2 HCC Intertiol Expands its Professiol Indemnity Team
7.3 RICS Cites Unnecessary Claims by Mortgage Lenders
7.4 SRA Considers Ban on Unrated Insurers
7.5 Uninsured Solicitors Firms Forced to Close
7.6 XL Trims its Share of Solicitors' Indemnity Insurance
7.7 New Underwriter for IFAs
7.8 Balva Issued with Winding-Up Order
7.9 Aviva Withdraws SME Cover
8 Regulation and Compliance 
8.1 Recent Changes
8.1.1 Legal Aid, Sentencing and Punishment of Offenders Act 2012 (LASPO)
8.1.2 Health Care and Associated Professions (Indemnity Arrangements) Order 2013
8.2 Upcoming Regulations
8.1.4 Solvency II
9 Macroeconomic Backdrop 
9.1 Real GDP Growth 
9.2 Property Market Dymics
9.3 Labor Market Conditions
9.4 Interest Rates
10 Company Profiles 
10.1 ACE European Group Ltd - Company Overview 
10.1.1 ACE European Group Ltd - key facts 
10.1.2 ACE European Group Ltd - main products 
10.1.3 ACE European Group Ltd - main competitors 
10.1.4 ACE European Group Ltd - key employees 
10.2 AIG Europe Ltd - Company Overview 
10.2.1 AIG Europe Ltd - key facts
10.2.2 AIG Europe Ltd - main products 
10.2.3 AIG Europe Ltd - main competitors 
10.2.4 AIG Europe Ltd - key employees 
10.3 AmTrust Europe Ltd - Company Overview 
10.3.1 AmTrust Europe Ltd - key facts
10.3.2 AmTrust Europe Ltd - main products 
10.3.3 AmTrust Europe Ltd - main competitors 
10.3.4 AmTrust Europe Ltd - key employees 
10.4 Chubb Insurance Company of Europe SE - Company Overview 
10.4.1 Chubb Insurance Company of Europe SE - key facts 
10.4.2 Chubb Insurance Company of Europe SE - main products 
10.4.3 Chubb Insurance Company of Europe SE - main competitors 
10.4.4 Chubb Insurance Company of Europe SE - key employees 
10.5 C Insurance Company Ltd - Company Overview 
10.5.1 C Insurance Company Ltd - key facts 
10.5.2 C Insurance Company Ltd - main products 
10.5.3 C Insurance Company Ltd - main competitors 
10.5.4 C Insurance Company Ltd - key employees 
10.6 HCC Intertiol Insurance Company Plc - Company Overview 
10.6.1 HCC Intertiol Insurance Company Plc - key facts 
10.6.2 HCC Intertiol Insurance Company Plc - main products 
10.6.3 HCC Intertiol Insurance Company Plc - main competitors 
10.6.4 HCC Intertiol Insurance Company Plc - key employees 
10.7 Hiscox Ltd - Company Overview 
10.7.1 Hiscox Ltd - key facts 
10.7.2 Hiscox Ltd - main products 
10.7.3 Hiscox Ltd - main competitors 
10.7.4 Hiscox Ltd - key employees 
10.8 QBE Insurance (Europe) Ltd - Company Overview 
10.8.1 QBE Insurance (Europe) Ltd - key facts 
10.8.2 QBE Insurance (Europe) Ltd - main products 
10.8.3 QBE Insurance (Europe) Ltd - main competitors 
10.8.4 QBE Insurance (Europe) Ltd - key employees 
10.9 Royal & Sun Alliance Insurance Plc - Company Overview 
10.9.1 Royal & Sun Alliance Insurance Plc - key facts 
10.9.2 Royal & Sun Alliance Insurance Plc - main products 
10.9.3 Royal & Sun Alliance Insurance Plc - main competitors 
10.9.4 Royal & Sun Alliance Insurance Plc - key employees 
10.10 XL Group Plc - Company Overview 
10.10.1 XL Group Plc - key facts 
10.10.2 XL Group Plc - main products 
10.10.3 XL Group Plc - main competitors 
10.10.4 XL Group Plc - key employees 
11 Statistics
11.1 Review Period: 2008-2012
11.2 Forecast Period: 2013-2017
12 Appendix 
12.1 Methodology 
12.2 Contact Timetric 
12.3 About Timetric 
12.4 Timetric's Services 
12.5 Disclaimer


List of Tables
Table 1: Insurance Industry Definitions 
Table 2: UK Professiol Indemnity Insurance - Market Summary (GBP Thousand), 2008-2012
Table 3: UK Organizations with Compulsory Professiol Indemnity Insurance Requirements
Table 4: UK Professiol Indemnity Insurance - Market SWOT Alysis 
Table 5: UK Recent and Upcoming Regulatory Changes
Table 6: ACE European Group Ltd, Key Facts 
Table 7: ACE European Group Ltd, Main Products 
Table 8: ACE European Group Ltd, Key Employees 
Table 9: AIG Europe Ltd, Key Facts 
Table 10: AIG Europe Ltd, Main Products 
Table 11: AIG Europe Ltd, Key Employees
Table 12: AmTrust Europe Ltd, Key Facts
Table 13: AmTrust Europe Ltd, Main Products
Table 14: AmTrust Europe Ltd, Key Employees
Table 15: Chubb Insurance Company of Europe SE, Key Facts 
Table 16: Chubb Insurance Company of Europe SE, Main Products
Table 17: Chubb Insurance Company of Europe SE, Key Employees
Table 18: C Insurance Company Ltd, Key Facts
Table 19: C Insurance Company Ltd, Main Products 
Table 20: C Insurance Company Ltd, Key Employees
Table 21: HCC Intertiol Insurance Company Plc, Key Facts
Table 22: HCC Intertiol Insurance Company Plc, Main Products
Table 23: HCC Intertiol Insurance Company Plc, Key Employees
Table 24: Hiscox Ltd, Key Facts
Table 25: Hiscox Ltd, Main Products
Table 26: Hiscox Ltd, Key Employees
Table 27: QBE Insurance (Europe) Ltd, Key Facts
Table 28: QBE Insurance (Europe) Ltd, Main Products
Table 29: QBE Insurance (Europe) Ltd, Key Employees
Table 30: Royal & Sun Alliance Insurance Plc, Key Facts
Table 31: Royal & Sun Alliance Insurance Plc, Main Products
Table 32: Royal & Sun Alliance Insurance Plc, Key Employees
Table 33: XL Group Plc, Key Facts
Table 34: XL Group Plc, Main Products
Table 35: XL Group Plc, Key Employees