Written by Dave Hedgecock
Friday, 29 March 2013 18:15
AVIVA depart the Professional Indemnity market in favor of more profitable markets. In an article in The Insurance Times, Corporate and Specialty Risk Managing Director David Hall announced that AVIVA was to shed £30m-£35m of premium and up to 20 staff in a bid to restore profitability to its Professional Indemnity book.
To read the full article follow the link below.
Hall said: “The reason for this move is simple, our PI book has been unprofitable, and although we have tried corrective action, the current market conditions are against us. He added: “Aviva has been very clear about its focus on cash flow, and from a general insurance perspective, we have said we will take tough action on lines of business that are not delivering profitable returns.”
What are Hammond Professional Indemnity Consultants doing for clients?
We will be writing to all AVIVA policy holders to inform them of the decision made by AVIVA and advising them of the implications of the move which will be minimal until their cover is due for renewal over the coming 12 months. It is not clear if AVIVA will offer any renewal terms at this time, as they intend to remain in the market to some degree just not in the lower SME sector.
As PI specialists we have a very comprehensive list of insurers to choose from. With 98% of our total business written being Professional Indemnity we don't have an issue with finding an alternative to AVIVA, indeed a number of insurers have already pledged to match if not better the expiring premium being paid by current AVIVA policyholders. We see the main problem arising for AVIVA policyholders is where their broker may struggle to find an alternative insurer. AVIVA are one of the big household name insurers accessible by most General Insurance Brokers, however, many of these brokers don't specialise in PII so it is possible they may not have the access to markets available to specialist broker like Hammond Professional Indemnity Consultants.
We will be available and happy to help any AVIVA policyholder find alternative terms and we have a renewal registration page on our website to allow policyholders to register their renewal date to enable us to contact them six to eight weeks before their renewal is due.
The Insurance Times