Looking ahead: the next 12 to 24 months

The outlook for professional indemnity market remains positive. Barring any significant deterioration in claims experience or wider economic shocks, competition between insurers is expected to remain strong throughout the next renewal cycles.

Premium rates are therefore expected to remain broadly stable, with well-performing firms continuing to achieve favourable outcomes and opportunities to secure longer-term agreements, where appropriate. However, insurers are likely to become increasingly selective, rewarding firms that can clearly evidence investment in cyber resilience, governance frameworks, financial stability, and proactive risk management.

For firms experiencing rapid fee growth, expansion through acquisition, or significant changes to practice profile, insurer scrutiny is likely to increase. Early engagement with the market and comprehensive underwriting presentations will become increasingly important in differentiating risk quality and securing the most competitive terms.

In summary, the market continues to present an excellent opportunity for firms to review programme structure, insurer participation, and long-term purchasing strategy.

We hope that the insights shared in this review provide value to firms considering their own insurance arrangements and broader risk management strategies.

As the UK's leading adviser to the legal profession on professional indemnity insurance, Lockton remains committed to providing independent advice, innovative solutions, and market leading insights to help our clients navigate an evolving landscape with confidence.