PI rises 'a major insurance event of 2009' - Professional Indemnity

18/12/2009

Written by Neil Pointon

The rising cost of Professional Indemnity (PI) has been cited as one of the major events to have affected the insurance sector as a whole this year.

Such is the assertion of Muireann Bolger, who in an Insurance Times article reviews the past 12 months for the sector.

And while she notes that as the United Kingdom "plunged" into recession at the start of 2009 and attempted return to economic recovery, "the insurance world experienced similarly tumultuous ups and downs this year".

Proving particularly key, Ms Bolger claims, was the increase in PI insurance costs that brokers saw in August, rises which the expert notes came about due to a rise in negligence claims as the downturn rumbled on.

Indeed, Keith Richards, group distribution and development director for Tenet, highlighted to Financial Adviser earlier this year that a combination of the Financial Services Authority's mortgage review and poor investment performance had seen an increase in the number of investors looking to recoup expenses.

This in turn, he noted, will see PI insurance premiums rise, with mortgage intermediaries likely to be the first group of professionals to be affected by increasing rates.

(c) 2009 Adfero Ltd.

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