AUSTRALIA: PROFESSIONAL INDEMNITY INSURANCE MARKET VERY CHALLENGING

The first half of 2019 is been very challenging for many professional services firms renewing their professional indemnity insurance policies says Aon, a leading global professional services firm providing a broad range of risk, retirement and health solutions. Several Lloyd’s syndicates have stopped writing Australian professional Indemnity business due to increased claims activity and several large settlement that has pushed net underwriting combined ratios over 100% indicating unprofitability.

Lawyers and construction workers are heavily impacted professions with an average premium increase of 30% and 26% respectively based on Aon’s proprietary data.

Consultants exposed to cladding such as fire engineers, building certifiers, facade manufacturers and valuers have been impacted the most with almost three figure premium increases, if they can even obtain insurance at all.

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