Brokers turn to brokers for their professional indemnity cover; BIBA research reveals
The results of a survey by the British Insurance Brokers’ Association (BIBA)1 reveal the buying habits of UK brokers when it comes to their own Professional Indemnity (PI) insurance.
The PI market is hardening for brokers’ PI with underwriters having little appetite, so BIBA was keen to understand how this affected brokers when seeking their own cover.
In an increasingly litigious society, the need for appropriate PI cover is obvious. The results of the BIBA survey revealed that a massive 84% of respondents seek advice and buy their policies from a specialist PI broker. Turning to an expert ensures that brokers can source competitive terms and broad cover in a tricky market. It also highlights the value that a broker specialising in a field can add to the buying process for brokers, as well as their customers.
Steve White, BIBA’s Chief Executive, said: “At BIBA we take every possible opportunity to promote the benefits that consumers can gain from using a broker. The fact that brokers themselves also see these advantages reinforces the value that brokers add.”
Alan Drury, Director at Griffiths & Armour, a BIBA accredited PI broker added: “This survey provided valuable insight into brokers’ buying behaviour, when it comes to their own protection. Brokers are aware of the need to make sure they have the cover that meets the needs of their business and this is why 84% seek specialist advice. In addition, it confirmed our views that brokers are spending more time reviewing their exposures, leading to the purchase of higher and more realistic limits of indemnity. Again, this can only be the result of seeking advice from a specialist PI broker.”
Another of BIBA’s accredited PI providers, Neville Miles, partner at Lockton Companies concluded: “The fact that only 9% of respondents buy their cover direct from insurers demonstrates that PI is a unique market and approaching a specialist to make the arrangements allows brokers to carry on doing what they do best – providing service to their own customers - knowing that they are properly covered.”
1A survey by BIBA of its members in April 2015; 176 respondents.