UK Professional Indemnity Insurance Market – June 2025 Overview

The UK Professional Indemnity Insurance (PII) market has undergone a notable shift in 2025, moving away from the volatility of recent years into a more stable and competitive phase. For firms across sectors—from architects and engineers to consultants and accountants—this means renewed opportunity to secure quality cover at more sustainable premiums.

Here's a snapshot of the key trends shaping the PII market as of June 2025.

Market Stabilisation

After the hard market cycle of 2019–2022, characterised by rising premiums, restricted cover, and insurer withdrawals, the PII market—particularly in London—has now stabilised.

Rate corrections have largely settled, bringing consistency back to renewals.

Firms are better able to build long-term relationships with insurers and brokers, placing greater value on trust, transparency, and mutual benefit.

Premium Trends

The good news continues for firms with a strong risk profile:

  • Well-managed businesses with clean claims histories and robust governance are now seeing competitive premiums.
  • Smaller firms, once squeezed out by high rates and limited appetite, are now benefitting from greater choice and affordability as new capacity enters the market.

Increased Capacity and Competition

The PII market is now seeing more insurers competing for business, resulting in:

  • Greater availability of higher limits of indemnity
  • Improved policy terms, such as reinstatement clauses offered at no extra cost
  • Renewed appetite even in traditionally high-risk sectors like construction, financial services, and technology

This environment allows brokers like LBH Insurance to negotiate broader and more tailored cover for clients.

Underwriting Focus on Emerging Risks

While rates are improving, underwriting standards remain high—particularly regarding technology-related risks.

Firms using AI, digital tools, or automated decision-making are under increased scrutiny.

To secure favourable terms, firms should demonstrate:

  • Strong governance practices
  • Clear usage policies for new technologies
  • Robust supervision and oversight protocols

Being proactive in addressing these risks can significantly influence how underwriters assess your exposure.

Rise of Data-Driven Underwriting

Insurers are increasingly turning to data and analytics to fine-tune their underwriting:

  • Proprietary data sets and industry benchmarks are being used to offer more tailored policies
  • Risk modelling tools allow for more accurate assessments and pricing, particularly for complex professions or projects

This shift means firms that are transparent, organised, and digitally mature are more likely to benefit from competitive rates and enhanced terms.

How LBH Insurance Can Help

At LBH Insurance, we specialise in Professional Indemnity Insurance and have access to a broad network of UK and London Market insurers. Whether you're an established firm or a growing practice, our expert team can help you:

  • Access competitive quotes
  • Navigate complex policy wordings
  • Identify coverage gaps and emerging risk factors
  • Secure bespoke solutions tailored to your business needs

Call us on 01702 347889 for a no-obligation, competitive quote—and peace of mind that your cover reflects both your risk and your reputation or email enquiries@lbhinsurance.co.uk.