Professional Indemnity Insurance blog

Insurance News in Brief

2012-02-17T09:18:00.002Z

AXA get good results with a turn around on its 63 million losses in 2010. The company reported around £133 profit for 2011.

Large insurance broker Cooper Gay changed name its MGA oliva to 'Globe Underwriting'. The broker is itself is part of the Cooper Gay Swett and Crawford headed up by CEO Toby Esser.

The (FSA) Financial Services Authority is loosing its managing director Margaret Cole the Authority itself will be super seeded by a new regulator in 2013 by 2 new organisations the prudential regulation authority and financial conduct authority.

Public Liability & Employers Liability Insurance Too Cheap

2012-02-02T11:51:00.002Z

The current problem in the insurance market is the fact that rates for Public & Employers Liability is far too low and at present there seems little chance of the rates hardening commercial insurance rates have been at a all time low for 4-5 years specialist commercial brokers professional insurance agents ltd Director Lynn Hearsey states that in 30 years of trading she has never seen rates pro-rate so low. With products like professional indemnity insurance, directors and officers and public liability sold online this has driven down the pricing.

50% rise in professional indemnity insurance for Independent Financial Advisors

2012-01-31T08:09:00.002Z

According to Jamie Newell, Managing Director of IFA Solutions, Independent Financial Advisors should expect a 50% or more increase on their professional indemnityinsurance premiums.

The underwriters fear that investment conditions may result in more clients trying to claim on their policies under the grounds of mis-selling.

With an increase in external costs, higher inflation and the instability in the Eurozone, Insurers are having to raise the cost of their premiums.

This is also partly to do with the Insurance Market’s capacity for IFA businesses decreasing since Quinn Insurance were put into administration in 2010. Two London underwriters have indicated that they will not be renewing IFA policies this year. Independent Financial advisors need to start looking around for companies that provide a reasonable rate for professional indemnity insurances.

The FSA Hits Argos Aggregator Site Who Sell Home Car Insurance

2012-01-27T09:21:00.000Z

The FSA has taken a good look at some aggregator sites which has led to comparison websites run by Argos and Google's owned beat that quote agreeing to take their aggregator comparison sites offline.

The website run by Argos and Google owned beat that quote, offer home insurance, car insurance, public liability,loans and life insurance are now undergoing a review before launching.

FSA clearly do not want clients to be misled by the price comparison websites, and one main area of concern was that client may think they were receiving actual quotes rather than just illustrations of what maybe available and with no chance to discuss the facts meaning claims maybe rejected. Cleary claims against compliance firms of their professional indemnity insurances and possible business interruption insurance could be a factor if they advised either beat that quote or Argos regarding the FSA requirement.

Surgeons call for tighter regulations on cosmetic surgery

2012-01-25T14:58:00.002Z

Plastic surgeons are demanding that practitioner’s of cosmetic surgery receive yearly checks and tighter controls especially in their use of implants. An estimated 40,000 woman in the UK have received PIP breast implants that are not up to the standard that they should be. Thousands of cosmetic surgical procedures have been performed each year in Britain, many of which are performed by doctors who have no specialist training.

NHS medical director Professor Sir Bruce Keogh suggested that an Insurance Scheme for cosmetic surgery patients could be introduced after the PIP breast implants scandal. Patients who paid for their procedures privately will have to fork out again for the PIP implants to be removed and replaced. An Insurance scheme for future patients who undergo cosmetic surgery would provide protection for patients

What's Happening in the European Commercial Insurance Markets

2012-01-23T09:43:00.000Z

It seems that despite all the Euro Debt Liability there is still a big interest in the UK Commercial Insurance Market with French companies heading up the investments being placed into the SME insurance covers. Although there is a tail of 2 cities Groupama being put up for sale MMA provident marrying and taking on the name of Covea with a promise of 20 million pounds plus advertising in the UK its new online Quote & Buy insurance product range, we are likely to be perhaps commercial insurances such as public liability, professional indemnity insurance will be among the offerings. It has to be said that at present there does seem to be a French invasion into the UK insurance markets.

USA Anti-Piracy Laws in US Cause Problems with Wikipedia and the Law May Lead to Thousands or Millions of Claims Against Insurances

2012-01-18T09:34:00.000Z

Greedy companies and politicians want to stop the publication of free information, by so called anti piracy laws (SOPA) and (PIPA) stop online piracy act, and protect intellectual property act which may start legal proceedings against millions of people who currently obtain free information and claims against insurance companies. Who may protect companies may start if the laws are passed on such policies as intellectual property insurance or professional indemnity insurances. Wikipedia has taken down its English language site as a protest against these proposed laws in the USA with a statement imagine a world without free knowledge Bloy Boing Boing is also taking part as well as Google who have out a link on their website to information with the line "Tell Congress : Please don't censor the web!".

The State of Insurance Software Providers Offering Commercial Insurance Products

2012-01-18T08:36:00.002Z

As company results start to fall into place at the beginning of the year we have seen some major insurance software company results with losses from SSP's latest result topping £22 million and poweplace the towergate owned company cutting back its sale force by one quarter and with most of the major software producers showing poor results.

They have usually offered brokers Online Quote and Buy systems mainly B2B for products such as Professional Indemnity Insurance, Directors and Officers Insurances, Commercial Combined, Property Owners and Shops and Office Insurance what needs to happen is a change of focus from GWP grabbing to make a profit and the darling of the insurance industry are no different to any other company with one exception in that they have lots of other peoples money to spend. Lets be frank most average CEO's could have achieved the same given the funding received by these companies.

Credit Rating Agencies Getting it Wrong Could Lead to Professional Indemnity Insurance Claims

2012-01-17T14:56:00.000Z

It seems that we are always to believe what credit rating agencies get it right but with something as important as a countries AAA rating are they always right. Standard and poor's faced criticism about their rating of France by the EU commissioners and Frances prime minister Sarkozy.

Moody's and S&P have massive power and influence over what could happen to a countries ratings is because they produce what the financial markets rely on. These agencies need their wings dipped, they make millions out of the reports they produce and the point is that these reports are not always accurate.

Perhaps the best way to sort them out is to make claims against their professional indemnity insurances and bring their directors and officers into account. Particularly when they can loose billions of Euro, pounds and dollars of the markets just by a wrong analysis of a rating and countries like France. America suffer from sometimes their very poor reporting

Heavy Storms Cause Problems With Electric Power Leaving Homes With No Power

2012-01-06T08:30:00.002Z

Electrical engineers and services are trying to repair the damage caused by storms with winds in some regions reaching up to 100 mph.

In Scotland over 30,000 homes and businesses are without any electricity. The met office has issued warning of rain and high winds in Wales Scotland and the North of England.

There has been delays on trains and the roads with trees and floods blocking roads.. Many properties with damaged roofs and water flood will be putting in claims to insurance companies on their Public Liabilities and Home and Office Insurance policies, claims are expected to run into millions.

PIP Breast Implants May Cause Claims Against Professional Indemnity Insurances or Medical - Mal Practice Insurances

2012-01-03T14:39:00.002Z

It is suggested that because 'PIP' breast implants could have up to 10% failure rate, that private clinics should pick up the bill to replace these implants.

Mr Fatah the president of the British Association of plastic surgeons has suggested that the PIP implants may have a much higher chance of default than figures released by private clinics.

These should be a ethnical and moral obligation to replace the faulty implants. In any case woman who have had PIP implants may very well be putting in claims on plastic surgeons, professional indemnity insurances or their medical-mal practice liability policies.

Irish Levy tax to affect all insurances including professional indemnity insurance

2011-12-31T12:15:00.000Z

The new levy tax of 2% on all non-life insurance polcies except health, marine, aviation, cargo and re-insurance risks comes into affect on 1st January 2012. This new charge is to be added to the existing Irish insurance premium taxes.
The funds raised from this new levy are to pay for the losses from Quinn Insurance, which went into administration in 2010.
This will mean companies will be paying more for their professional indemnity insurance and public liability insurance from the beginning of 2012.

Possible medical malpractice claims

2011-12-21T10:35:00.002Z

There is concern over cheap breast implants could lead to professional indemnity medical-malpractice claims

There is serious doubts over some breast implants and thousands of women who have been advised to have them removed.

There has been several cases of cancer linked to a company called Poly Implant Prothese (PIP) and suggestion that these implants should be removed.

PIP was apparently one of the worlds largest suppliers of breast implants, the company has since been shut down and it's product banned based on it causing serious injury.

This of course opens up claims against the directors & officers insurance (if still operating) and of course against any professional indemnity insurance or medical malpractice covers.

The French authorities have already began a criminal investigation. Directors and officers could be charged and after the Health Product Safety Agency said that it could no longer exclude the possibility that industrial silicone was used in the implants.

FSA to Set Out New Mortgage Lending Rules to Reduce Future Liabilities to Spark P.I.I Claims

2011-12-19T10:01:00.002Z

The City regulator the FSA is setting out new rules to avoid another problem with risky mortgage lending. IFA's mortgage brokers and banks will have to collect much more information and make sure that those people applying for mortgages can afford re payments without this new in-depth classifications at peoples finances before lending the industry may well find themselves facing claims against their professional indemnity insurance policies for not making sure that clients can afford the repayment of their mortgages.

Thomas Cook Reports 398 million loss, check your Travel Company has Professional Indemnity & Buy holiday Protection Insurance

2011-12-14T11:11:00.000Z

The well known travel firm Thomas Cook reports £398 million loss suggestions are that the company may close 200 of its underperforming stores.

The company also sold it Spanish hotel chain and Clubs de Vacaciones (ICU) for estimated £61million.

What the future for travel/companies and travellers always check that your supplier is covered for Professional Indemnity Insurance and that it is a member of ABTA or purchase holiday protection insurance, which will at least get you all home

Commercial Insurance Brokers

2011-12-09T09:22:00.000Z

It looks like another tough time is going to happen in 2012, its likely that rates will harden in the short terms and for commercial brokers all ready struggling to keep 'GWP' up and make profit. Where are the new areas of growth going to come from both Insurance companies and insurance brokers are looking very carefully at where they might attach a market. With companies like AXA, Groupama and Markel all expanding their areas of operations into direct marketing and also new products such as Professional Indemnity Insurance, why this class has become so popular is hard to say with 20-30 plus companies all offering this type of cover. This makes it difficult for the insurance broker to satisfy all its insurance supplies with rates going down and down.

SME's Need to Consider Professional Indemnity

2011-12-08T16:06:00.000Z

There are many small business that think there is no requirements for Professional Indemnity Insurance cover from both keepers, freelancers, IT consultants, disability consultants, business management consultants all who have a good reason to make sure that they hold Professional Indemnity Insurance. this would make sure that have in the event of a mistake where they could have been neglectful in their duties to their clients.

Several insurers have recently joined the main providers of PII companies such as Groupama and Aviva now offer SME mainly miscellaneous classes.

Markel has also decided to now extend its Professional Indemnity Insurance covers direct to the public via the internet.

Insurance News On Brokers

2011-12-07T13:38:00.000Z

Very few 'Start up' brokers are now applying to the FSA for direct authorisation and one has to wonder with big brokers grabbing every opportunity to buy up existing smaller brokers where is the Insurance world going to find new distribution channels with motor insurance and home insurances all being grabbed up by the aggregators.

Most medium and small brokers have chosen to concentrate on commercial insurances such as property owners liability financial lives such as professional indemnity insurance to Directorsand Officers, together with commercial combined type products.

The insurance companies are also very much to blame for not offering small 'start ups' the chance to yet establish themselves by setting ridiculous targets.

Professional Indemnity Insurance / New Online Providers

2011-12-05T10:00:00.002Z

Professional Indemnity Insurance seems to now be one of the most popular commercial insurance classes being purchased via the internet.

With new providers appearing almost daily, the competition has hotted up for both sponsored links and unsponsored positions. There are however, only a few B2C type multiquote offering, ie where you can get a choice of providers. One website run by Professional Insurance Agents Ltd has more than 9 different suppliers illustrated on it's websites for Professional Indemnity Insurance, making it one of the very few online quote and buy facilities where clients can obtain a real choice of insurance companies offering this type of insurance. It also has over 350 professions to choose from.

Professional Indemnity Insurance Notes

2011-11-24T10:07:00.000Z

There has been some movement in markets on Professional Indemnity rates but only in the traditional classes such as solicitor Independent Financial Advisors, survey evaluation surveyors where as the other misc classes for IT, business consultants management consultant etc, rates for Professional Indemnity have stayed at very low rates and do not look like moving for some time yet.

It only follows the insurers that have put pressure on brokers and on solicitors, representing them on claims to reduce their costs and broker commissions.

Mortgages for 1st time buyers

2011-11-21T09:47:00.002Z

The government are trying several ways to kick start the first time buyer markets by introducing new concepts such as shared equity, joint ownerships, rent and buy government schemes at up to 95% mortgages.

Mortgage brokers, Building Societies and Builders can all help with the promotion of the new ideas to help 1st time buyers on the 18 November 2011.

Leading estate agents said in London it was almost impossible to buy a house if you were a 1st time buyer because of the high house prices and high deposits required, sometimes up to 30% and before lenders would consider an application, other difficulties in the industry was the way in the past the mortgage suppliers had acted, very often not in a professional way and we all know where that leads the USA, UK and Euro zone.

Mortgage Brokers, Banks and Building Societies have gone through a lean time with their own costs to cover themselves against neglect with Professional Indemnity Insurance policies and Bankers Blanket Bonds increasing in price.

There has to also be a mindful eye towards Directors and Officers Insurance to cover any rogue Directors or Officers lending irresponsibly to 1st time buyers.

Benetton's May Face Legal Liability From Vatican

2011-11-20T10:29:00.000Z

Benetton the clothes company will be having to defend itself against legal action being taken by the Vatican, it has also had comments from the White House. The problem is based on a advertising campaign where Benetton shows images of Angela Merkel and Nicolas Sarkozy kissing each other with a 'Unhate' slogan. Also shown is Obama kissing Hu Jinlao and the pope kissing the lips of Ahmed El Tayyeb.

One hopes that Benetton have a good legal protection insurance policy and that their advertising agents hold a good level of Professional Indemnity Insurance, as maybe Benetton's advertising agents or consultant should have tested the 'rather good idea' before producing the pictures and adverts. Clearly Benetton may will be able to defend a legal action using a legal protection insurance, but may well consider the idea of counter claiming against their advertising agents Professional Indemnity policy base on Professional neglect, for not pre-testing any reactions from the various groups, unless of course they had provided a sample test of reactions to Benetton before producing the pictures, which has of course damaged their campaign and may have cost the company clearly.

Unemployment Figures Strain On Government Payment Liability

2011-11-18T08:16:00.000Z

The high unemployment figures as 16th November 2011 in the UK which have reached in addition of 2.60 million. Worrying particularly as many of the unemployed are young between the age of 16-24, which accounts for nearly 1.02 million of the total unemployed figures. Many companies from across most sectors are either not taking on more staff or making redundancies saying they are with the government trying its hardest to help youth unemployment, by introducing apprentice schemes, many say this is not enough.

Some growth areas can be found and tends to be in specialist areas, for instance Broker Houses, Insurance Brokers dealing in Professional Indemnity Insurance & Directors Officers Insurance, where there has been a growing demand for this type of cover. A spokes woman for Professional Insurance Agents Ltd, Karler Mears, pointed out that the professional financial sectors have started to see more claims of Professional Indemnity and Directors & Officers type policies, and therefore new staff to support the extra demand being received by companies has opened up vacancies, which could help reduce unemployment in our area and location.

Sean Quinn of Quinn Insurance

2011-11-16T10:43:00.000Z

Sean Quinn previous chairman/director of Quinn Insurance is to be investigated for apparently selling of land to his five children only a few weeks before filing for bankruptcy, this is according to a Irish newspaper.

Quinn was declared bankrupt last Friday for 2.8 billion Euro liability and debt, and it seems that the family home at Greaghrahan, Ballconnell, Co. Cauan, was sold to the Quinn children for 100,000 Euro in the beginning of October.

Mr Quinn's liabilities and massive borrowings from the Anglo Irish Bank were used to perhaps fund a host of foreign investments. Peter Kelly claims money owed from un-paid loans and guarantees, although court documents seen by the Irish Independent show the refinancing of the same loans to Mr Quinn and Quinn linked companies that provided the insurance markets with financial products such as ProfessionalIndemnity Insurance.

Insurance particularly for solicitors who pay very high premium were happening even when the state took control of the bank. The legal fees to defend any investigation of Mr Quinn and his companies are likely to be a record amount and should Mr Quinn of provided himself and his company their own Professional Indemnity Insurance or Directors & Officers Insurance, via re-insurance or other supplier they would of course force high liabilities and massive legal costs in any investigation that is to take place.