04 Capacity

We have not seen a substantial change in insurers’ approach to capacity during the first half of 2022.

Generally speaking, insurers will look to limit their exposure to £2,000,000 to £2,500,000 for each risk and in instances where they will offer more, this will typically be further up the ‘tower’ of cover purchased, giving them suitable ventilation and reducing their exposure to successive losses from a single claim.

Following actions to correct rates and coverage, a small number of insurers have shown a greater interest in underwriting the sector. Whilst the approach to this remains conservative, H1 2022 saw a positive uplift in the number of enquiries from insurers to see well performing risks.

We are not anticipating a significant change of position for the second half of the year. Insurers’ approach will remain circumspect and buyers of PI insurance must continue to work hard to differentiate themselves and collaborate with their broker to actively ‘sell’ their risk to insurers.