The architects & engineers (A&E) professional liability insurance (E&O) market is showing signs of tightening, finally. We discussed professional liability market conditions in a prior post (here), and a recent article in Property Casualty 360 (see here) notes that the A&E market is tightening. Key drivers noted include:
- Sluggish construction activity
- Reduced protections & risk management
- Claims activity
We have a somewhat different perspective. While claims activity has increased and revenues have declined for architects & engineers, there are a large number of specialty underwriters available for all types of A&E accounts supporting a competitive market. However, prior underwriting results are adding caution to the mix. Day to day, tightening in the A&E market is driven more by tighter underwriting than overall rate increases. The result is higher prices and reduced coverage for more complex or higher risk accounts and little or no increases for lower exposure, stable accounts.
Our characterization of the market is fragmented and in transition, not hard.
Use our wholesale specialty markets and professional liability insurance expertise to navigate the market for your A&E E&O accounts.