19.06.25

Market Update: Professional Indemnity Insurance 2025

A More Stable Market Brings Renewed Opportunity

The Professional Indemnity (PI) insurance market has taken a positive turn in 2025, offering firms a more settled and flexible environment than in recent years. With a broader range of insurers active in the market, businesses are better positioned to secure long-term, strategic partnerships with brokers and insurers alike. Cox Mahon is well placed to guide clients through this more navigable landscape and help them achieve tailored, sustainable cover for professional indemnity insurance 2025.

Stability Returns – A Platform for Long-Term Relationships

Following a prolonged period of market hardening, conditions in the PI insurance sector have begun to stabilise. This shift brings a welcome reduction in the pricing volatility and capacity restrictions that have challenged firms in recent renewal cycles. With many rate corrections now embedded, firms—particularly those in the legal sector—have an opportunity to engage with insurers on a more collaborative, long-term basis. This environment is ripe for building relationships rooted in trust, consistency, and shared objectives.

Evolving Risk Landscape – Technology and Culture in the Spotlight

Although traditional underwriting factors such as firm size, claims history, and practice areas remain pivotal, insurers in 2025 are placing greater emphasis on evolving risk exposures. Technological advancements, especially the use of artificial intelligence, are under scrutiny. How firms deploy, monitor, and manage these tools is of increasing relevance. A strong organisational culture, effective governance, and clear risk policies are all aspects underwriters are keen to understand. Firms demonstrating responsible leadership and a proactive approach to risk management are more likely to attract favourable attention.

Competitive Premiums – A Reward for Robust Risk Management

Firms that have maintained a clean claims record and can evidence sound risk control procedures are likely to benefit most in the current climate. The renewed competition among insurers has led to improved terms and the potential for more attractive premiums – provided firms engage early and position themselves well in the market. Experienced brokers play a vital role in helping clients prepare and present their risk in the best possible light.

For those with more complex risk profiles or recent claims activity, pricing may remain challenging. However, the increased capacity and insurer appetite mean more options are available than in recent years, which is a particularly encouraging development for small to mid-sized practices.

More Capacity, More Choice – The Importance of Market Access

One of the most significant changes this year is the increased market capacity. With more insurers re-entering or expanding their participation in PI, firms now have access to a wider selection of policy structures and pricing models. To make the most of these developments, it’s important to work with a broker who can access the full breadth of the open market. This ensures that all available options are properly explored and compared.

Cox Mahon are perfectly placed to assist you in the placement of your PI requirements with access to all participating insurers with extensive knowledge of exposures and regulatory requirements.

For further insight or to discuss your Professional Indemnity requirements, please contact us.

Information provided by Lisa Langley, Cert CII, Team Leader, Professional Risks, Cox Mahon Ltd.