The humble – and somewhat bizarre – genesis of the professional indemnity (PI) insurance industry belies the scope, complexity and society-shaping impact this coverage has had in the last 90 years. Digging into the rich history of the market, Edward Ambrose – UK head of professional indemnity at RSA highlighted that it all began with an (alleged) snail in a bottle of ginger beer in a Paisley café near Glasgow.
The resulting court case went to the House of Lords, he said, which set the global precedent that you do have a duty of care to third parties. The story has proven an effective framing device for the origins and evolution of the PI offering, particularly during RSA’s recent Broker Roadshow tour, which saw experts across the insurer’s professional risks division travel out to six regions of the UK to share insights into what’s happening in the space.
PI insurance – a fast-changing landscape
Having served the PI market for 30 of those 90 years in operation, Ambrose knows better than most how subject it is to the winds of change that blow in from every direction – economic, legal, technological, environmental, political and social.
“It has been great to get out into the market and break down the current trends impacting PI, which includes changes to the economy, changes to legal decisions, shifting global dynamics and future trends such as the impact of artificial intelligence in insurance,” he said. “And our brokers seem to have enjoyed it. We’ve had lots of interaction with our Q&A in the end, and hopefully have given the brokers we’ve been talking to things to think about and discuss with their clients.”
RSA’s tour of the regions – taking the temperature of the PI marketplace
Getting out to take the temperature of the market is critical, Ambrose said, because, despite the critical role e-trading has to play, insurance is still fundamentally heavily relationship-based. Having good service, good products and good people is what it takes to create a fit-for-purpose offering – and underpinning that is RSA’s commitment to be out there on the front foot with its broker partners, explaining what it’s doing and why.
