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

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LONDON, May 5, 2014 /PRNewswire/ -- Reportbuyer.com has added a new market research report:

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

http://www.reportbuyer.com/banking_finance/insurance/professional_indemnity_insurance_uk_key_trends_opportunities_2017.html

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


Reasons 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



Table of Contents
1 Executive Summary
2 Introduction
2.1 What is this Report About?
2.2 Definitions
2.3 Methodology
3 Market Analysis
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 Professional Indemnity Insurance – SWOT Analysis
5 Porter's Five Forces Analysis
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 Professional Indemnity Broker Network
7 News
7.1 Royal College of Nurses Closes Indemnity Loophole
7.2 HCC International Expands its Professional 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 Dynamics
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 CNA Insurance Company Ltd – Company Overview
10.5.1 CNA Insurance Company Ltd – key facts
10.5.2 CNA Insurance Company Ltd – main products
10.5.3 CNA Insurance Company Ltd – main competitors
10.5.4 CNA Insurance Company Ltd – key employees
10.6 HCC International Insurance Company Plc – Company Overview
10.6.1 HCC International Insurance Company Plc – key facts
10.6.2 HCC International Insurance Company Plc – main products
10.6.3 HCC International Insurance Company Plc – main competitors
10.6.4 HCC International 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 Professional Indemnity Insurance – Market Summary (GBP Thousand), 2008–2012
Table 3: UK Organizations with Compulsory Professional Indemnity Insurance Requirements
Table 4: UK Professional Indemnity Insurance – Market SWOT Analysis
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: CNA Insurance Company Ltd, Key Facts
Table 19: CNA Insurance Company Ltd, Main Products
Table 20: CNA Insurance Company Ltd, Key Employees
Table 21: HCC International Insurance Company Plc, Key Facts
Table 22: HCC International Insurance Company Plc, Main Products
Table 23: HCC International 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




List of Figures

Figure 1: UK Professional Indemnity Insurance – Gross Written Premiums (GBP), 2008–2012
Figure 2: UK Professional Indemnity Insurance – Share of Commercial Liability Category (%), 2008–2012
Figure 3: UK Professional Indemnity Insurance – Penetration Rate (%) and Density (GBP), 2008–2012
Figure 4: UK High Court Claims for Professional Negligence, (Volume of Cases), 2006–2011
Figure 5: UK House Price Index, (%), 2004–2013
Figure 6: UK Registered Professionals (Thousand), 2007–2012
Figure 7: UK Professional Indemnity Insurance – Gross Written Premiums Forecast (GBP) 2013–2017
Figure 8: UK Commissions Paid by Commercial Liability Insurers (GBP), 2008–2012
Figure 9: UK Market Shares of the Top-10 Professional Indemnity Insurers (%), 2012
Figure 10: UK Professional Indemnity Insurance – Five Forces Analysis
Figure 11: UK Insurance Regulatory Framework
Figure 12: UK Real GDP Growth (%), 2008–2017
Figure 13: UK Housing Market Dynamics (%), 2004–2013
Figure 14: UK Labor Market Conditions (%), 2004–2012
Figure 15: UK Bank of England Base Rate (%), 2004–2013




Read the full report:
Professional Indemnity Insurance in the UK, Key Trends and Opportunities to 2017

http://www.reportbuyer.com/banking_finance/insurance/professional_indemnity_insurance_uk_key_trends_opportunities_2017.html

For more information:
Sarah Smith
Research Advisor at Reportbuyer.com
Email: query@reportbuyer.com
Tel: +44 208 816 85 48
Website: www.reportbuyer.com

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