For long-tail classes of insurance such as professional indemnity, premium receipts are often insufficient, of themselves, to pay claims. Investment income is crucial. But investment returns are poor, reserve releases are no longer coming to the rescue of underwriters and premium levels remain low.
According to research by the Insurance Times, the top 20 UK commercial lines insurers have, considered as a whole, failed to achieve underwriting profit in each of the past three years. How long will it last?
In the run-up to what is likely to be many firms' last October renewal, Ruth Lawrence discusses the current solicitors' PI market and asks, what will happen in the future?
- 2012 renewals.
- The impending abolishment of the Assigned Risk Pool.
- Unrated insurers.
- What does the future hold?