PI and D&O claim increases 'cause of concern' - Professional Indemnity and Directors' and Officers' liability insurance

22/07/2009

Written by Professions Division

The cost of Professional Indemnity (PI) insurance claims could be set to rise even further as the economic crisis rumbles on, it has been suggested.

Furthermore, Directors' & Officers' (D&O) claims may also see continued increases, the inaugural Insurance Times' Power Network survey shows.

In the study, senior figures working within the insurance industry were asked to rank a number of potential challenges to the sector on a scale of zero to four, with the latter being a major area of concern.

Some 75 per cent of respondents gave the rising cost of claims a score of either three or four, making it the greatest worry among such professionals.

One of those questioned claims "this is a major concern, as the recession is likely to drive up claims costs across just about every insurance class through fraud, vandalism and theft" going on to express trepidation that D&O and PI claims are already on the up.

Meanwhile, another respondent suggests that the cost of claims will rise "significantly over the next six months".

Speaking to the Insurance Times last month, Doug Robare, financial and professional lines manager for Zurich, stated that take-up of D&O and PI insurance is set to rise over the coming weeks as the ongoing economic downturn "highlights the necessity to have proper coverage in place with qualified insurers and make sure you have very good risk management".

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PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2009 Adfero Ltd.

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