Skip to main content
The Actuary: The magazine of the Institute and Faculty of Actuaries - return to the homepage Logo of The Actuary website
  • Search
  • Visit The Actuary Magazine on Facebook
  • Visit The Actuary Magazine on LinkedIn
  • Visit @TheActuaryMag on Twitter
Visit the website of the Institute and Faculty of Actuaries Logo of the Institute and Faculty of Actuaries

Main navigation

  • News
  • Features
    • General Features
    • Interviews
    • Students
    • Opinion
  • Topics
  • Knowledge
    • Business Skills
    • Careers
    • Events
    • Predictions by The Actuary
    • Whitepapers
    • Moody's - Climate Risk Insurers series
    • Webinars
    • Podcasts
  • Jobs
  • IFoA
    • CEO Comment
    • IFoA News
    • People & Social News
    • President Comment
  • Archive
Quick links:
  • Home
  • The Actuary Issues
  • August 2015
08

Professional indemnity insurance sector grows in value to £1.17bn

Open-access content Wednesday 19th August 2015 — updated 5.13pm, Wednesday 29th April 2020

Professional indemnity insurance and directors and officers (D&O) insurance has grown since 2012 and the trend is likely to continue.

Based on a report published by Timetric, the professional indemnity insurance category grew at a compound annual growth rate of 7.15% during 2010-14 and gross written premiums in the sector were worth £1.17bn at the end of 2014.

The online data provider said factors such as an increasing number of incorporated businesses, directors' rising public exposure through social media, and increasing regulatory activity and expansion in the accounting and solicitor professions, all contributed to further demand for professional indemnity and D&O policies.

The report said brokers were the main distribution channel for professional indemnity insurance, with the most recent example being the deal between AXA and Mapledown to provide the service to the construction industry.

But Timetric said brokers faced a challenge from direct marketing, which was expected to "play a significant role" in the sale of the product in the SME market.  

Steffen Mueller, financial services analyst at Timetric, said: "With Direct Line's market entry this year, a new competitor is ready to increase capacity in the SME market and take some market share in the category."

According to the report, the top five professional indemnity insurers increased their combined market share from 44.5% in 2012 to 52.8% in 2014. With a share of 18.5%, AIG was the "clear market leader" in 2014, followed by Hiscox, QBE, RSA, and HCC. 

Timetric said the market was "fragmented" but firms were likely to consolidate. Mueller said: "A merger between Zurich and Royal & Sun Alliance is currently under consideration, which would create a new big player in the sector. Regardless of this merger becoming reality, however, the next years will be marked by a trend towards concentration and consolidation."

Timetric said the sector would generate £1.5bn in premiums in 2019 due to the increase in the number of professionals subject to compulsory professional indemnity insurance requirements and insurers expanding into industries with voluntary insurance needs, such as engineering, information technology and marketing.

This article appeared in our August 2015 issue of The Actuary .
Click here to view this issue

You may also be interested in...

2

Pet insurer sees six-fold increase in claims for anxiety and behavioural issues

The number of insurance claims for pets suffering conditions including anxiety and excessive grooming is on the rise, according to The Co-operative Insurance.
Thursday 20th August 2015
Open-access content
2

Trade credit insurance turnover increases by 6.6%

Turnover in the trade credit insurance sector in the UK increased by 6.6% to £315bn in 2014, according to the Association of British Insurers (ABI) .
Friday 21st August 2015
Open-access content
2

Hearing loss insurance claims increase after short respite in 2014

Insurance claims for deafness in the UK “have spiked after a short-lived respite in 2014”, according to PwC.
Monday 24th August 2015
Open-access content
2

Largest on-screen car crash in Hollywood movies 'would have cost insurers £5m'

A famous car crash scene in cult film The Blues Brothers would have resulted in the largest insurance claim in movie history, research has found.
Wednesday 26th August 2015
Open-access content
2

More than 27,000 uninsured cars seized this year including Ferraris and Lamborghinis

Police forces across the UK have seized at least 27,688 uninsured cars in 2015 to date, including luxury brands such as Ferraris and Lamborghinis, according to research by Churchill.
Thursday 27th August 2015
Open-access content
2

More motorists running out of fuel after 'getting into bad habits'

The number of motorists breaking down as a result of running out of fuel increased to 827,000 in 2014, up 50,000 on 2013, an insurer has found.
Thursday 27th August 2015
Open-access content
Filed in
08
Topics
General Insurance
Share
  • Twitter
  • Facebook
  • Linked in
  • Mail
  • Print

Latest Jobs

Senior Reserving Analyst

London (City of)
Negotiable
Reference
149485

Senior GI Modeler - Capital and Planning

London (Central)
£ excellent
Reference
149436

Risk Oversight Manager

Flexible / hybrid with a minimum of 2 days per week office-based
£ excellent
Reference
149435
See all jobs »
 
 

Today's top reads

 
 

Sign up to our newsletter

News, jobs and updates

Sign up

Subscribe to The Actuary

Receive the print edition straight to your door

Subscribe
Spread-iPad-slantB-june.png

Topics

  • Data Science
  • Investment
  • Risk & ERM
  • Pensions
  • Environment
  • Soft skills
  • General Insurance
  • Regulation Standards
  • Health care
  • Technology
  • Reinsurance
  • Global
  • Life insurance
​
FOLLOW US
The Actuary on LinkedIn
@TheActuaryMag on Twitter
Facebook: The Actuary Magazine
CONTACT US
The Actuary
Tel: (+44) 020 7880 6200
​

IFoA

About IFoA
Become an actuary
IFoA Events
About membership

Information

Privacy Policy
Terms & Conditions
Cookie Policy
Think Green

Get in touch

Contact us
Advertise with us
Subscribe to The Actuary Magazine
Contribute

The Actuary Jobs

Actuarial job search
Pensions jobs
General insurance jobs
Solvency II jobs

© 2023 The Actuary. The Actuary is published on behalf of the Institute and Faculty of Actuaries by Redactive Publishing Limited. All rights reserved. Reproduction of any part is not allowed without written permission.

Redactive Media Group Ltd, 71-75 Shelton Street, London WC2H 9JQ