Surveyor mergers 'to rise' following struggles with Professional Indemnity (PI) costs - PI insurance for Surveyors

14/1/2009

As they look to manage the cost of Professional Indemnity (PI) insurance, an increasing number of surveyors are set to merge.
With such professionals reported to be "suffocating" from substantial overhead burdens, this year is set to see a particular rise in surveyors joining forces, an article in Mortgage Strategy suggests.

"Most activity will be in the surveyor and broker communities," the publication points out.

Falling home mover transactions were also cited as a reason for the predicted spike in surveyors choosing to merge, while brokers are suffering from being "chronically undercapitalised".

And with merger activity in 2009 "inevitable", it was suggested that mergers could create significant opportunities for those businesses with strong resources to purchase other organisations.

Meanwhile, it was recently reported that PI claims against property consultants may increase over the coming months.

Writing for Building.co.uk, Lindy Patterson, a partner at law firm Dundas & Wilson, claimed that as parties look to reclaim losses incurred from construction deals, disputes could increase.

Professions Division Associate Director at PI specialist PYV commented: "It is inevitable that the current economic situation will lead to some restructuring of businesses to combat both increased costs and also lower levels of income. Professional Indemnity Insurance will become more difficult to obtain and more expensive as firms suffer more claims and insurers harden rates."

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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) 2008 Adfero Ltd.

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