Fairer apportionment could flush out the poor risks from the industry as the bad get worse and the good get better. Although not an immediate given, the prospect of fewer "distressed" firms operating should produce lower premiums in the long term. The premium rises PI has experienced and the increasing number of cover limitations are largely the symptoms of a hard insurance market. Nevertheless, our industry is guilty of applying a broad brush in response to the rise in claims resulting from poor risk management in some firms – and the construction industry has suffered more than most.
Lance Rigby, executive director, Howden Insurance Brokers, via email