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Professional Indemnity Insurance in the UK

Table of Contents 

Executive Summary

Introduction

Market Analysis

List of Graphics / Tables

 

0.0 EXECUTIVE SUMMARY

1.0 INTRODUCTION

What is this report about?

Finaccord’s study breaks down individual country markets into 13 professional categories…

… with a number of other key segmentations also provided

Rationale

This series of reports delivers up-to-date research about a complex, multi-faceted insurance sector…

... with affinity schemes researched in detail through the associated PartnerBASE dataset

Methodology

Survey of professional and trade associations

Survey of brokers and underwriters

Market data

Definitions

Professional indemnity insurance

Professional categories

Operating models

Other notes

PartnerBASE and market data file

Finaccord 

2.0 MARKET ANALYSIS

Introduction

Number, growth in number and segmentation of insurable enterprises

By number of insurable enterprises, the IT and business consulting category is the UK’s largest…

… while the estate agency and property category has been growing most rapidly

The vast majority of insurable enterprises have annual fee income or turnover in the lowest band

Market value, growth and segmentation 

The value of the UK’s professional indemnity insurance market is large but slow-growing…

… with medicine and dentistry the largest individual category within it

Around 37% of insurable enterprises have actually bought this type of cover

A substantial proportion of premiums comes from smaller professional enterprises

Medical liability insurance in the UK has been characterised by an increase in claims...

... in a market in which the bulk of cover is underwritten by specialist mutual insurers

An increasing proportion of solicitors are choosing to purchase top-up cover

A very low proportion of the market value is underwritten outside of the UK…

… and the bulk of the market is made up of renewals as opposed to new business…

… and of primary layer as opposed to excess layer business

Underwriter utilisation and market shares

Liberty and Markel enjoy the highest regular utilisation rates among brokers researched

The MPS (Medical Protection Society) is the likely market leader by value of business dealt with…

… in an overall market for professional indemnity cover in which around 70 underwriters are competing

Affinity schemes with professional and trade associations

Well over a half of associations researched have an affinity scheme for professional indemnity cover…

… with Arthur J. Gallagher having secured the most partnerships among brokers…

... closely followed by Towergate

Acquisitions means that Howden and Marsh are also increasingly significant in this field…

... in which most participating brokers have just one affinity partnership

Among underwriters, Hiscox can be identified with the greatest number of affinity schemes…

… followed by RSA and AXA

Other distribution channels

Brokers

Brokers are the key distribution channel in the UK although only a few transact business online

Direct sales

A handful of underwriters sell professional indemnity insurance on a direct basis

Online aggregators

A number of online aggregators are present in the market

Other affinity partners

Other distributors include major automotive associations and several sports organisations

Market value forecast

All categories will achieve nominal compound annual growth in premiums up to 2019…

… with business rising most among entities with annual fee income or turnover in the highest band

LIST OF GRAPHICS / TABLES

0.0 EXECUTIVE SUMMARY

Number of insurable enterprises and value of professional indemnity insurance in the UK, segmented by professional sector, 2015

1.0 INTRODUCTION

Professional associations contacted by Finaccord, segmented by professional category and membership type

2.0 MARKET ANALYSIS

Number of insurable enterprises in the UK, segmented by professional sector, 2015

Compound annual growth or decline in number of insurable enterprises in the UK, segmented by professional sector, 2011 to 2015

Number of insurable enterprises in the UK, segmented by professional sector, 2011 and 2015 (table)

Number of insurable enterprises in the UK, segmented by annual fee income / turnover band, 2011 and 2015

Number of insurable enterprises in the UK, segmented by annual fee income / turnover band, 2011 and 2015 (table)

Gross written premiums for professional indemnity insurance in the UK, segmented by professional sector, 2011 and 2015

Gross written premiums for professional indemnity insurance in the UK, segmented by professional sector, 2011 and 2015 (table)

Gross written premiums for professional indemnity insurance in the UK, segmented by annual fee income / turnover band, 2011 and 2015

Gross written premiums for professional indemnity insurance in the UK, segmented by annual fee income / turnover band, 2011 and 2015 (table)

Gross written premiums for professional indemnity insurance in the UK segmented between domestic and non-domestic underwriters, 2015

Gross written premiums for professional indemnity insurance in the UK segmented between new business and renewals, 2015

Gross written premiums for professional indemnity insurance in the UK segmented between primary and excess layer business, 2015

Percentage of brokers surveyed making regular use of particular underwriters for professional indemnity insurance in the UK, 2015

Estimated market shares of underwriters of professional indemnity insurance in the UK, 2015

Estimated market shares of underwriters of professional indemnity insurance in the UK, 2015 (table)

Affinity schemes for professional indemnity insurance offered through professional and trade associations in the UK: provision rate and operating models, 2015

Affinity schemes for professional indemnity insurance offered through professional and trade associations in the UK: broker share of partnerships, 2015

Affinity schemes for professional indemnity insurance offered through professional and trade associations in the UK: underwriter share of partnerships, 2015

Gross written premiums for professional indemnity insurance in the UK, segmented by professional sector, 2019 (forecast)

Gross written premiums for professional indemnity insurance in the UK, segmented by professional sector, 2019 (forecast) (table)

Gross written premiums for professional indemnity insurance in the UK, segmented by annual fee income / turnover band, 2019 (forecast)

Gross written premiums for professional indemnity insurance in the UK, segmented by annual fee income / turnover band, 2019 (forecast) (table) 

 

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