As four of the nine professional liability insurance providers currently operating in Ireland recently pulled the plug on the struggling market, the news of Axis’ foray comes just ahead of the renewal deadline set for December the 1st. Experts within the Irish professional indemnity insurance industry had been issuing warnings that those seeking business liability insurance cover could face up to 50 per cent higher rates as the reduction in competition and skyrocketing claims took their toll on the marketplace.
Axis has made the decision to increase the level of competition in the market by joining in through broker McGivern Flynn & Co in order to offer its services to firms in need.
Eimear Lane, spokesperson for the broker, stated that the firm had received reports of insurance rates being hiked up from €15,000 to as high as €75,000 for a single practitioner legal practice because there are only two insurers who were actually making any effort to present new business term offerings.
Continuing her statement, Ms Lane stated that if the market is to survive during these highly difficult times, the need for a higher level of competition is terribly real.
Finally the spokesperson for the broker stated that since Axis as an insurer was not saddled with the kinds of historic losses that other members of the Irish professional indemnity insurance market were, they can afford to offer competitive rates.
Several insurers have already fled the market due to high losses. Among those who have left include AG Dore, RSA, Hiscox, and Quinn, which had been the third largest player in the professional indemnity insurance market before its departure.