PI market hikes upwards
Amid the festive cheer, there is not much joy in the professional indemnity (PI) market.
The Australian market has previously gone through a period of overcapacity and soft rates, but the market is now hardening.
Losses at Lloyd’s and several syndicates exiting the PI market have contributed to reduced capacity. After its 2018 loss was reported, Lloyd’s identified international PI as its second least profitable line.
Building and construction risks in particular are facing increased premiums, but the hardening is across the board. Influencing factors include increased loss ratios and increased litigation, so brokers and their clients must be prepared for higher premiums and excesses, more exclusions, and reduced coverage.
Insurers’ depleted reserves, caused by worldwide natural disasters, also affect the broader insurance market and are contributing to the hardening rates and reduced capacity.
LAUW renew binders
On a more positive note, London Australia Underwriting has renewed all its binders for 2020 across its product range – PI, D&O, financial institutions, management liability, cyber and IT.
We look forward to working with our supporting brokers in 2020 as partners in the insurance process, working together to achieve the best outcomes for our mutual clients.