In this month’s ‘We chat to’, we spoke to Ed Ambrose, UK Head of Professional Indemnity here at RSA. Ed shared his insights on the evolving landscape of Professional Indemnity (PI) insurance, highlighting the key market trends shaping 2025 and beyond. We explore how PI insurance is adapting to modern risks, including the growing influence of technology and data. Ed also discusses the impact of generative AI on advice-based professions, and how insurers are beginning to assess and respond to these emerging challenges.
Finally, we took a closer look at RSA’s pioneering Climate Professionals PI product—why it was launched, and what the future holds for this fast-growing sector.
Here is what Ed shared with us:
Q: What would you consider to be the top 3 market trends in PI insurance throughout 2025 and into 2026?
Professional Indemnity (PI) exposures are constantly evolving due to economic, legal, technological, and global developments. This makes PI a fascinating and dynamic class of business. The top three trends we’re observing are:
- Increased market capacity: This is driving soft market conditions and creating a highly competitive environment. There is pressure on rate, and brokers are insisting on the use of their wider ‘customer friendly’ coverage wordings for placement
- Broker consolidation and PI facilities: The consolidation of brokers has resulted in more placement control in the hands of fewer and larger brokers. This feels a different dynamic to previous soft markets
- Greater use of technology and data analytics: Technology and data analytics are being leveraged to improve pricing accuracy, enhance service delivery, and win business more effectively
Q: How is PI Insurance evolving to accommodate modern risks?
PI insurance is adapting in lots of ways to address emerging and modern risks:
- PI wordings continue to react and evolve to respond to claim issues such as internal and external fire safety concerns, particularly in the wake of the Grenfell tragedy
- ‘Silent cyber’ became a big industry discussion point driven by our regulator for clarity on coverage. The market discussion was around ‘what is a Cyber exposure and should it be separately covered?’ and ‘what is a PI exposure and should it be clearly affirmed as such either in the wording or by endorsement?’. This culminated in an influential International Underwriting Association (IUA) PI endorsement which was widely adopted by the market to affirm cover given
- Subsequently, package policies are increasingly offered to help with the cross over between cyber/crime and tech/media PI
- New sector-specific propositions are emerging. For example, in November 2024 we launched our Climate Professionals PI proposition, acknowledging the need for a bespoke proposition to an emerging but underserved sector
Q: How will the use of AI in advice-based businesses impact the risk?
The rise of generative AI (Gen AI) is highly relevant to all professions covered by PI insurance, as Gen AI spreads and becomes BAU. We are likely assuming, but not yet pricing for, Gen AI exposures in our PI book. ‘Silent AI’ as it were akin to the ‘Silent Cyber’ that came before.
I think we are in a similar scenario for Gen AI, and that our PI book is exposed to future claims with the current difference of there being limited stand-alone AI-cover products. As professions, it is probably accountants and solicitors who are leading the pack in adoption.
To date, we have experienced no claims from the use of Gen AI by any profession, and neither broadly speaking have the market. As a next step, we are assessing to then introduce risk management questions on existing and new risks on their use of Gen AI and what guardrails they have in place.
Q: RSA recently launched the pioneering Climate Professionals PI product, in a market that is growing at speed. How do you see the product evolving to ensure it stays relevant?
- Staying curious and learning by continuing to work with customers and external bodies (Society of the Environment, for example) within the industry to keep the product fresh and relevant
- Being reactive to any required changes
- Evolving a relevant ‘handshake’ with other RSA products, starting with Directors and Officers. Building a sector-wide proposition for things sustainably and supporting our customers homes, businesses and communities being resilient and adapting to the impact of climate change
- Continued marketing presence
- Promoting our SME capability
Q: PI has always been an advice-based sale. Could you ever see a time where it is sold online?
PI is sold online via many e-trade solutions. At RSA, we trade online via Acturis and RSA Online platforms.
I believe it is inevitable that as systems' capabilities grow over the next 10 years then parameters on what is written online will increase. However, I think the complex and large risks will always benefit from human interaction and relationship.
