Architects and engineers professional liability market up in 2022Posted On: Mar. 1, 2023 11:50 AM CST
The architects and engineers professional liability insurance market continued to see healthy growth in 2022, but fresh challenges face the sector this year, according to a report Wednesday from specialty broker Ames & Gough.
Most insurers saw “substantial” premium growth for the second consecutive year, with a majority hitting double-digit percentage increases, the McLean, Virginia-based brokerage reported. In all, 81% of survey participants reported their professional liability written premium grew in 2022; 13% saw flat premium levels; and 6% had a decrease in premium.
Among insurers reporting premium growth, more than one-third saw growth of 20% or more; some one-quarter reported growth levels of 11% to 15%; and nearly a third had premium increases of 6% to 10%.
This year, however, insurers will seek to counter the impact of continued deteriorating claims experience as well as lingering issues related to the pandemic, including the backlog of claims litigation, worker shortages, supply chain disruptions, and the effects of both economic and social inflation on claim costs, the report said.
Ames & Gough said the report was based on survey responses from underwriting executives at 16 leading insurers that provide architects and engineers professional liability insurance and represent on a combined basis “a significant percentage of the current overall marketplace for this line of coverage.”
The survey respondents included American International Group Inc.’s Lexington unit, Beazley PLC and Berkshire Hathaway Specialty Insurance Inc.