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Leaders of their industry niche
The professional liability space has been competitive of late, with soft rates prevailing due to a significant amount of capital waiting to be deployed. Despite the overall softness, certain classes of business and specific locations are continuing to present challenges.
Director of insurer partnerships at C3 Risk and Insurance Services, Wella Campbell, says, “These areas may experience higher risks or complexities, making them more difficult to underwrite and operate within, even in the current competitive landscape.”
This has forced the best professional liability providers to deliver for clients and outshine their competition. Insurance Business America’s 5-Star Professional Liability winners have achieved this and earned the industry’s respect.
All the best providers have dealt with a specific increase in claims over the past 12–24 months.
“While economic loss remains the primary reason, there has been an increase in claims related to contingent bodily injury and property damage, reflecting industry-specific risks and trends,” explains Campbell. “This shift may be due to evolving project complexities and heightened awareness of safety and liability concerns within these professions.”
IBA’s winners were rated by brokers with the three most important services:
These are the same leading criteria also in 2023 with one change to the top three, where “service to brokers” was ranked in place of “claims payment/processing speed”.
Of the respondent brokers, 80 percent told IBA they believe that professional liability volume will continue to increase throughout 2024.
This is backed up by data which estimates further growth:
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Gross written premium is forecasted to grow annually (compound annual growth rate [CAGR] 2024–2028) at a rate of 4.12 percent, leading to a market volume of US$211.20 billion by 2028 compared to US$179.70 billion in 2024.
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Other figures from Cognitive Market Research predict a CAGR of 3.9 percent from 2024 to 2031.
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The domestic market is experiencing a surge in demand due to increasing litigation risks and the need for comprehensive coverage.
What makes the best Professional Liability providers stand out?
“A top-performing professional liability provider should offer several fundamental services. IBA’s research finds that professionals value coverage, service to brokers and speed of processing claims and payments as most important when choosing a policy for a client,” Campbell says.
“Value-added offerings, like contract review services, are crucial as they help reduce potential risks before they arise,” shares Campbell. “Having experienced and efficient claims handlers or adjustors is essential to ensure that claims are resolved promptly and fairly, minimizing the impact on business operations.
“Expertise in managing complex liability matters and a responsive customer service team are also key. A provider that incorporates these qualities brings significant value and assurance to their clients.”
Claims efficiency paramount for best Professional Liability providers
For 5-Star winner Arch Insurance Group , attracting and retaining talent in its claims department has been key to success.
“We have the best claim examiners in the industry,” reveals executive vice president of the executive assurance and professional liability divisions, Justin Psaki.
“They’re service oriented, and most importantly, they’re aligned with underwriting. A lot of times, the communication produced by our claims team to clients and brokers is in collaboration with the underwriters before it’s sent.”
Arch’s speed and efficiency when handling claims keeps the company in good stead with clients.
“We’ve invested a tremendous amount in digitizing and automating the claim and payment process,” says Psaki. “We’re reducing manual intervention, any discrepancies, and invoices. We’re also attempting to reduce the overall process. It’s very disparate in terms of the different product types on the market.”
Campbell believes top firms should operate on a 24-hour window when claims are reported.
“The adjustor should be in communication with the insured, providing guidance on the next steps. For cyber liability claims, however, an immediate response is expected, given the time-sensitive nature of these incidents. Prompt action in these cases is vital to mitigate potential damage and address the urgency that cyber-related claims typically demand,” she says.
Arch has positioned itself as a market leader in cyber insurance.
“We now have 30 underwriters who are dedicated cyber claims and a cyber risk engineering team,” shares Psaki. “We rolled out a new primary policy, offering active monitoring and alerting for claim prevention to our clients.”
“Our talent density is what really sets us apart from our competition”
Justin PsakiArch Insurance Group
Admiral Insurance Group makes it two in a row after capturing a 5-Star Professional Liability in 2023, with distinction for their in-house claims team.
“They’re just like the underwriters, where they’re always looking for ways to find coverage for claims,” shares senior vice president of professional liability, Nir Gabay. “They’re experts by specializing in the healthcare, professional, or errors and omissions side. They collaborate routinely with all departments throughout the organization to understand exposures and look for ways to cover a claim based on the coverage we’re giving.”
Admiral is proactive with cyber claims.
“Our underwriters are experts at understanding the exposures companies face from business interruption and data restoration incidents,” Gabay says. “We work to give clients peace of mind and mitigate any loss of income or extra expense that occurs.”
Maintaining relationships and collaborating with brokers is important for leading firms. When adopting new technology, it’s crucial that firms obtain feedback from brokers, be it consulting on what their needs are, or releasing products and getting their comments.
“At Arch, we send out surveys to our key trading partners, wholesale brokers, and program administrators that we synthesize, and then look to improve our interactions and business relationships with our brokers,” comments Psaki.
“We regularly meet with our brokers throughout the year to figure out how we can improve and increase our wallet share with them. We’re constantly looking for ways to improve and be the voice of the customer.”
“We’re here to make our insureds and wholesalers lives easier by being responsive and providing solutions”
Nir GabayAdmiral Insurance Group
Admiral shifted its focus in recent years, adapting to the needs of its brokers.
“We used to think we were really smart. We’d just release without asking anybody and we’d miss the mark,” says Gabay. “Now, before we release a product, not only are we getting feedback, but we also put our partner brokers on a team to help us develop the best product possible.”
This attitude is evident in Admiral’s new virtual care form – a blend of technology that encompasses cyber and medical malpractice.
Gabay explains, “We had brokers who are part of the product development team to help us make sure that we were on the right track, and providing a solution that would be the best for the market.”
- Chubb
- Great American
- Travelers Insurance
