According to newly published research findings, the market for professional indemnity insurance throughout the Euro zone could be worth as much as €7 billion (£6.1 billion) by 2014.
The new Finaccord study indicated that gross written business liability insurance premiums reached a total sum of €5.8 billion last year. This represents a €0.6 billion increase over 2006 figres of €5.2 billion.
The UK was included in the professional liability insurance industry study. Additionally nine other major countries in Europe were also examined: Switzerland, Sweden, Spain, Poland, Netherlands, Italy, Germany, France, and Belgium.
Finaccord director Alan Leach released a statement in conjunction with the publication of the research findings. Mr Leach stated that there were more than 6 million businesses found to be potentially eligible for the specialised insurance cover across the ten countries.
For some countries included in the survey, professional indemnity insurance cover is merely optional. However for many others securing the cover is compulsory if they wish to continue doing business in their chosen profession.
Despite the number of professions that required compulsory cover, industry experts predict that one of the primary drivers of the market in the future will be the increase in take-up rates among those businesses who are not required to do so. The financial consulting, management, and IT sector may be the largest possible segment, Mr Leach said, as it contains some 1.5 million businesses that are insurable.
Finaccord poled more than 1,000 associations across the Euro zone as part of its research. The organisation discovered that 39 per cent of the associations it polled had decided to establish specific professional indemnity insurance cover schemes.
The UK was the one country where the schemes were found to be most commonly used, as 57 per cent of UK associations had some scheme in place. The next highest countries were Germany, with a 52 per cent rate, an Italy, which tallied up at 48 per cent.