21-06-2007
Professional indemnity insurance getting cheaper
Premium costs for professional indemnity insurance have been falling over the last two years, according to one expert.
James Dieppe, a financial services analyst for research firm Datamonitor, said that premiums have dropped by up to 15 per cent since 2005 due to the growing amount of competition in the market.
He added that if there were fewer providers in the market, they would be able to charge higher prices for professional indemnity insurance policies and "be quite profitable".
"Five years ago the market was profitable and businesses weren't getting quite the best deal. Recently, what we have seen is lots of new providers being attracted into the market," Mr Dieppe commented.
Last month, Datamonitor released a report on the professional indemnity insurance sector, which estimated that the UK market was worth about £1.4 billion last year and that the market declined by five per cent during 2006.
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