The general benign soft market conditions seen in 2015 look certain to continue into 2016, with interest rates remaining well below those seen in 2008. Investors continue to provide ever more finance to new start-ups, whilst insurance companies struggle to achieve a healthy return on their capital.
Generally the overcapacity coupled with new entrants will continue to see underwriters experiencing pressure on rates. However, many underwriters are determined to maintain market share even at reduced premium levels.
Suffice to say this is probably one of the weakest rating environments seen in over a decade for Consultant Engineers Professional Indemnity risks.
With pressure on income this has already led to two major carriers, AIG and Zurich, looking to achieve headcount reductions, with others likely to follow.
JLT Specialty’s Professional Indemnity facility renewal
With 20 of the London’s leading Professional Indemnity Markets on the facility, and with one of the broadest global wording in the market JLT Specialty has successfully renewed its facility with effect from 1 February 2016 and is able to offer clients GBP £200 million+ in capacity.
New entrants to the PI Market 2015/16
- Everest RE
- Vibe Syndicate
- Pro Sight Syndicate
- Market movers
- Stuart Quinlan, Chris White, Daniel Prince have joined Hamilton Underwriting (all ex-Barbican)
- Martin King to Aegis (ex-Novae)
- James Rowan, Matthew Marshall to Atrium (ex-Marketform)
- Rob Crocker (Catlin) and Paul Kneafsey (Argo) to Everest
- Oliver Vale joined Zurich Singapore (internal move)
- Paul Nolan to join Allianz in the US (internal move)
- Andy Palmer to Vibe (ex-Markel)
- Chris Mauduit (Catlin) to IGI General Insurance
For more information please contact Michael Hurst, Partner on +44 (0)20 7528 4346 or email@example.com