BREXIT UNCERTAINTY ADDING TO TENSIONS IN PROFESSIONAL INDEMNITY MARKETS

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BREXIT UNCERTAINTY ADDING TO TENSIONS IN PROFESSIONAL INDEMNITY MARKETS

In recent times Professional Indemnity Markets have entered choppy waters with contraction in available capacity resulting from a Lloyds profitability review and poor performances in some market sectors. There is now recent evidence of some underwriters temporarily refusing to write covers because of uncertainty around Brexit and in particular the currency risks surrounding the ongoing drama around the exit of the UK from the EU.

In the area of Professional Indemnity claims for Construction related Professions such as Architects, Engineers and Design and Build Contractors a hard market on the back of a poor claims experience has been a feature for some time. The current hard market derives from a poor claims experience across the class of Business. The Grenfell Tower disaster in 2017 was not the cause of this hard market in itself but the huge increase in claim notifications which followed that event certainly suggest that Grenfell was the catalyst which lit the touchpaper on what was already a market low on capacity.

Meanwhile, Axis a primary provider of cover announced to the Law Society of Ireland back in July that they would not be providing Solicitors Professional Indemnity cover in the Irish market after December 1st 2019.

Now we are receiving feedback from Lloyds brokers of pressure on capacity for renewal of Surveyors Professional Indemnity with one Underwriter deciding not to write any more business for now because of the currency risk around fluctuating rates because of the Uncertainty around Brexit.

Watch this space for further updates.

September 5, 2019