Professional indemnity too risky for insurers
Insurers are turning away from risky lines of business in their droves with professional indemnity emerging as one of the key business lines being rejected.
A study carried out by PricewaterhouseCoopers found that two thirds of the insurance companies surveyed are changing the kind of risks they will underwrite and are reducing their exposure to areas like aviation, US casualty, US property and professional indemnity.
Philip Calnan, partner, PricewaterhouseCoopers, said: ‘The heavy losses as a result of September 11 have been a final wake up call for many insurers, clearing away any remaining complacency and hastening change.
‘Most companies recognise the need for change and what they need to do to survive and succeed going forward, but some appear to be finding it harder than others to turn words into action.’