Italian legislation making professional indemnity insurance compulsory presents opportunities for insurers, but competition is keeping prices low, according to Davide Balocco, head of PI for Markel in Italy.
"There is a lot of capacity and a lot of competition for this business. As such the rates are very low. Probably they have reached a level which has not been touched for ages", Balocco explained. "This is a good thing for insurers. They are paying a lot of attention to pricing and they are going to get plenty of alternatives. Within this sector there is demand for specific types of cover which not all the insurers are prepared for or have enough experience to look after. In this case the competition is much less and there are just a few players which are interested or able to provide the specific cover."
Legislation making PI compulsory for all professionals was due to come into force on 13 August, but was delayed by 12 months to allow the Professional National Councils and Professional's Provident Institutions to develop policy conditions with insurers on behalf of their members.
Balocco does not expect to see a large hike in PI uptake until the legislation comes into force, but said that there has been a discernible rise in wider liability insurance purchasing in Italy in recent months.
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