Lloyds: syndicates offering PII

Two insurers are set to join the professional indemnity insurance (PII) market this year, and one is claiming it can slash premiums for four-to-ten partner practices by 20%.

The two new entrants are both Lloyd’s syndicates: one is Catlin UK, the other remains anonymous but is aiming to take a large slice of the four-to-ten partner market by offering an average discount of 20% to the 200 firms it intends to write cover for this year.


Brokers Howden UK, with whom the undisclosed insurer has a close relationship, said it has negotiated an exclusive deal with the underwriter. It claims the underwriter can orchestrate the savings for firms in that bracket because it has no legacy of loss within the existing market.


Kevin Culliney, executive director of Howden, said: ‘There has been a complete lack of stability in premiums as some insurers quoted unsustainable rates in a bid to gain market share back in 2000, and they are now having to make substantial corrections to grow premiums to meet the legacy of loss that has built up.’


Peter Farthing, a partner at City firm Clyde & Co and chairman of the Law Society’s professional indemnity committee, said: ‘The Society welcomes new entrants because part of the objective is to maintain a diverse and competitive market.


‘Howden’s intentions are bold and it will be interesting to see if the market conditions will enable them to deliver.’