Once again, the Pi insurance market is under scrutiny, with companies appealing that the increasing costs of claims is reflecting on the rising prices of insurance.
The Royal Institution of Chartered Surveyors has begun discussions aiming to face problems regarding the present risk and pricing concerning professional indemnity insurance (Pi insurance) as the UK valuation sectors are said to be creating ‘market dysfunction’.
The quantity and cost of handling alleged negligence claims is having a significant impact on the cost of Pi insurance, not just for firms who have received claims but for the market as a whole, and because of this, the RICS are challenging the current Pi insurance market, stating that something must be done. The Royal Institution of Chartered Surveyors is issuing amendments and recommendations regarding the current market of professional indemnity insurance as they claim that the pattern emerging within the pricing and costs is heading into disarray.
RICS has commissioned a working group of valuation experts onto this case, and their spokesperson commented, stating that, “We are interested in hearing from RICS members, or those who have experience and understanding of the issue, in relation to the recommendations.”
RICS are an organisation who have outlined and noticed the key problems and possible glitches in the Pi insurance market, how severe or indeed problematic the market may be heading one cannot say, but most financial markets require constant attention and frequent amendments, insurance being no different.