PII market overview

IPA Insolvency Practitioner newsletter, April 2024

The Professional Indemnity Insurance (PII) landscape has undergone a period of significant change in recent years. However, current trends suggest a potential shift in this dynamic as insurers review the impact of their underwriting actions and the overall performance of their PII portfolios. This is positive news for insolvency practitioners.

There has been a welcome change to the market for those who have been at the sharp end of insurer underwriting actions. Appetite and coverage is starting to broaden with new capacity joining the professional indemnity space, leading to a more competitive marketplace.

While stricter underwriting practices initially limited coverage, they have also given insurers more confidence in the risks they hold. Combined with a potential increase in market capacity, this suggests fewer firms will face the complete absence of coverage. However, navigating this evolving landscape still requires a skilled broker to secure the best terms.

As the capacity of insurers rises and new entrants look to take part, it’s important to understand whether they’re committed for the long haul.

Previously poor market behaviours contributed to the hard market we’ve been experiencing over the past few years – so it’s important that practitioners ask themselves some key questions when evaluating new insurers: 

• Is the cover comparable to others who have been in the market for a long period?
• What is the capacity behind the insurer?  Are they A Rated?  Financially secure?
• Do they understand the risk?

If anything has become clear in recent years, it’s the importance of making wise choices when selecting insurers, striving to embed sustainability into your PII programme, and ensuring you’re well-prepared for whatever challenges lie ahead.

Maximising your renewal success

For all insolvency practitioners, preparing for renewal is still extremely important. If your broker can provide a strong, informative submission, it will increase the likelihood of obtaining the most competitive and widest coverage for your business.

Consider the following steps:

By following these tips, you can improve your chances of getting better renewal terms. Keep working closely with your broker and build strong relationships with them and your insurer. This will help you navigate market ups and downs and ensure you have a stable PII programme in the long run. 

We’re proud to support insolvency practitioners

We’re passionate specialists who empower all practitioners to get the most out of professional indemnity insurance. We have deep expertise of the insolvency sector, and a team dedicated to supporting practitioners’ insurance needs. That means we can truly take the time to understand your challenges, and find you the best solution.

In case of a problem, you need to be confident you’re covered. That’s why reliable insurance is key.

Let’s talk…

We’d love to hear about your organisation and would be happy to provide a no obligation review of your current insurance arrangements. Whether that’s to identify potential gaps or assess whether there is a better option for you – please get in touch.

Please note that guest content does not necessarily represent the views of the IPA.