PRESS RELEASE Professional Indemnity Insurance in Australia, Canada and South Africa Key markets outside ...
Media contact: Roberto Napolitano, +44 (0)20 3008 4406, rnapolitano@finaccord.comNotes to editors:Finaccord is a market re...
of 2

Press release professional indemnity insurance in australia canada and south africa

Published on: Mar 4, 2016
Published in: Economy & Finance      

Transcripts - Press release professional indemnity insurance in australia canada and south africa

  • 1. PRESS RELEASE Professional Indemnity Insurance in Australia, Canada and South Africa Key markets outside Europe are characterised by strong competition but also by new nichesLondon, 3 October 2012 - New research from Finaccord, a market research consultancy specialising infinancial services, reveals that competition among underwriters of professional indemnity insurance in Australiaand Canada is at least as strong as in Europe’s more developed markets while South Africa is likely to providegrowth potential in several niche segments.Collectively, the three new markets studied by Finaccord are estimated to have been worth more than USD 2.3billion in terms of gross written premiums and other revenue for professional indemnity insurance in 2011. Thiscompares to about USD 8.3 billion in 2011 for the largest ten European markets which Finaccord analysed forits report Professional Indemnity Insurance in Europe in 2011.“The Australian market is generally characterised by high penetration rates and increasing capacity in thosesegments which are expected to grow fastest such as IT and business consulting. Most professional groups arewell-served and have benefited from competition among providers although some property valuers and financialintermediaries have found it difficult to find affordable cover in recent years. The latter group, in particular, havesuffered from an increase in litigiousness in recent years”, commented Bernd Bergmann, a Consultant atFinaccord.Valued at about USD 1.06 billion, the Australian market for professional indemnity insurance is slightly smallerthan its Canadian equivalent at USD 1.15 billion, partly because the latter plays host to a higher number ofinsurable enterprises. In both countries, total premiums have registered moderate growth rates since 2007despite the fact that average premiums per policy declined in a few segments due to strong competition.“In Canada, two key segments, namely medicine and legal services, are difficult to enter for commercialinsurance providers as doctors are usually insured through the CMPA, a medical mutual organisation whilelawyers receive their mandatory cover from organisations linked to the provincial law societies. This means thatsales opportunities among some of the other professional groups are especially contested”, continued MrBergmann.Meanwhile, the South African market, while nominally much smaller than the other two at an estimated USD105 million in gross written premiums and other revenue in 2011, is likely to experience strong momentum in thefuture as beyond the traditional professions, penetration rates for professional indemnity insurance are stillrelatively low with more room for providers to develop and market new products.A growing segment in South Africa, as in most other markets, is alternative medicine which includes a diverserange of non-traditional healthcare practitioners such as acupuncturists, chiropractors and herbalists. However,in South Africa this growth segment does not currently include traditional African healers who despite their largenumber are insufficiently regulated to constitute a clear target for litigation.“While Australia and Canada are already highly developed marketplaces for professional indemnity insurancewith some segments showing signs of surplus capacity, a large proportion of professionals in South Africa arestill uninsured or underinsured. Hence, there is significant potential for those providers who can identify thegrowing niches. There is, for example, as yet limited provision of professional indemnity insurance to IT andbusiness consultants in South Africa. These segments are likely to become of greater interest to insuranceproviders due to the increasing risk exposure arising from contractual obligations stipulated by consultants’clients”, concluded Mr Bergmann. --- END ---
  • 2. Media contact: Roberto Napolitano, +44 (0)20 3008 4406, rnapolitano@finaccord.comNotes to editors:Finaccord is a market research, publishing and consulting company specialising in financial services. It provides its clientswith insight into and information about major issues in financial services in the UK, Europe and globally, with a particularfocus on marketing and distribution topics such as affinity marketing, bancassurance and strategic alliances.Professional Indemnity Insurance in Australia, Professional Indemnity Insurance in Canada and Professional IndemnityInsurance in South Africa are three country-specific reports published in September 2012 which provide a comprehensiveoverview of the professional indemnity insurance market. These reports harness the results of extensive primary researchcovering 400 professional associations in total. The studies break down the market for professional indemnity insurance on astandardised basis by professional group with 12 categories considered as follows: accountancy and finance, alternativemedicine, architecture and engineering, broadcasting and publishing, estate agency and property, financial and insuranceintermediation, healthcare-related services, IT and business consulting, legal services, marketing, medicine and dentistry,other professional sectors.Sample graphic from the research, showing the average annual growth in number of insurable professional enterprises inSouth Africa, segmented by professional sector, 2007-2011. Compound annual growth or decline in number of insurable enterprises in South Africa, segmented by professional sector, 2007 to 2011 Accountancy and f inance Alternative medicine Architecture and engineering Broadcasting and publishing Estate agency and property Financial and insurance intermediation Healthcare-related services IT and business consulting Legal services Marketing Medicine and dentistry Other prof essional sectors 0.0% 1.5% 3.0% 4.5% 6.0% Source: Finaccord Professional Indemnity Insurance Model

Related Documents