Professional Indemnity Market Report 2024
1. Introduction
This is our fourth annual survey of the UK professional indemnity market.
Our Legal Director cohort led on this year’s PI report campaign, surveying and interviewing insurers and brokers from across the UK to collate their insights into a single report.
Highlighting current and future market trends, the report touches on the fluctuation of rates, the impact of AI, the growth and influence of regional markets, amongst many other topical issues.
Findings snapshot
- Rates: The market was expected to stabilise, with 56% expecting there to be zero increase in rates in 2024; however, recent months have seen rates dropping, to an extent that appears to have caught even seasoned practitioners off guard.
- Regional growth: Beyond London, 50% of respondents expect to see an uptick in PI underwriting and claims handling in the North of England.
- AI: 72% suggested that the growth in use of AI in delivering professional services is increasing the risks of practice.
- Claims severity: There is a strong consensus that the severity of PI claims will continue to increase over the next 2 years, with 74% expecting this.
The PI market continues to show resilience despite the ever-changing nature of the industry and the internal and external influences it is subject to. We will watch with interest how the market evolves in 2025, and whether the risks and expectations identified in this report materialise. However, whether the soft market persists, regional presences continue to assert themselves, or if the impact of AI on professional services will ever live up to the hype, what is clear is that the ability of the market, and those of us operating within it, to identify and adapt to the changing landscape will be pivotal to continued success.
Sam Godding, Legal Director, Clyde & Co
To read last year's Professional Indemnity market report 2023, click here.
If there is a particular topic within the report that you would like us to come and speak to you about, please reach out to a member of our team below.
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