There is currently huge uncertainty, particularly in respect of construction related business, as to the correct pricing and cover considerations required to enable insurers to continue to support the PI Market. It is no secret that PI insurance in general has been one of the underperforming business lines across the industry in recent years, and there is a drive throughout the market to make these lines profitable, long term.
The team at Towergate Professional Indemnity give us a useful insight into the PI Market and how 2019 is looking so far.
The disaster at the Grenfell Tower has led to criticisms of both building regulation and fire safety, leading to grave concerns about the competency of the construction industry in general. Couple that with high profile company failures, with a hint of more to come, it is understandable that some insurers are running for cover.
We now find ourselves in a place where we must accept premiums are on the rise, along with limitations being imposed in cover. Some insurers have withdrawn from underwriting PI insurance, others are considering their options. Certainly, less markets are around, particularly to underwrite business involved in the construction process.
The effects of all of the above are that rates, cover limits are being restricted, exclusions are being imposed and, in some cases, cover refused. Therefore, it is essential for clients to be aware of the situation and act accordingly. Here are our top tips:
- Give yourselves plenty of time before renewal. Arrange a pre-renewal meeting three months ahead of renewal with your broker.
- Start collating information – positive risk management details, full details of contracts involving cladding, and all information on previous and current claims.
- Complete the renewal proposal form and send to your broker along with the detailed information collated.
- Your broker will review your renewal presentation and advise if they need any other information before they send it to insurers. Remember, the information you provide is a representation of your business and the more complete and thorough the better.
It is vital that your broker is experienced in dealing with the current scenarios facing the PI market. if they are not, ask them to utilise the services of one that is. Remember your broker is acting as your voice during the renewal process. They have to convince insurers that your business is one that they want to be involved with.
The Towergate PI team are highly experienced, having been broking construction PI risks for over 30 years, and are adept in dealing with difficult market conditions.