In their respective roles as joint MD and head of broker development at MGB Insurance Brokers (MGB), Nick Bender and Pat Boreham have a strong aerial view of everything that’s happening in the professional indemnity insurance (PII) market. In a recent IBUK Talk podcast, the insurance leaders shared some of their insights with Bender noting that the market has been in a state of upheaval for the last two and a half years.
Listen now: The consequences of the softening UK PII market
He is pleased to be seeing an easing of underwriting rates across certain markets which can only be good for UK professionals and the firms that require PII. That’s not across the board, however, he said, with sectors such as directors and officers, cyber, and medical malpractice not currently seeing any easing of rates.
“But every cycle changes, and we’re looking at how things go at every quarter,” he said. “I think the PII market has gone through its worst period for decades and, obviously, COVID-19 and the various lockdowns we’ve had haven’t helped at all. In fact, it’s hindered our roles.
“We have been trading in the Lloyd’s market since 1688 when the London Gazette first made reference to the Edward Lloyd’s Coffee House in Tower Street. And so, it’s quite apt that the market is getting back to normal or trying to get back to normal. In those days, in 1688, there were 80 coffee shops in the city of London so it’s quite apt that we’re [going] back to seeing underwriters at places like Caffe Nero. So, I think the worst is behind us, the market is not contracting anymore.”
Boreham wholeheartedly agreed with this assessment and added that of the 2,000 to 2,500 brokers across the UK market, only a very small number of them specialise in PII. And from MGB’s perspective, he said, PII usually only makes up a very small part of those brokers’ businesses.
MGB is beginning to see flickers of light at the end of the tunnel with an easing of the market with regards to both rates and cover, though it’s going to occur with different timing across different professions. From his viewpoint, Boreham said, it is critical that the MGB team communicates this understanding to its brokers throughout the UK, while bearing in mind that it’s generally only a small part of what they do.
“So,” he said, “if we could just keep them up to speed with how things are beginning to develop and change for certain professions then all the better, as far as we are concerned.”
