Market cycle · 2026

PI hard/soft cycle — where UK professionals are now

Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited (FCA FRN 724952) · Published 15 July 2026

The UK PI market has softened materially through 2025 and into 2026 from the hard-market peak of 2020-2022. Rate direction, capacity, and insurer appetite have all shifted.

What the cycle looks like

Hard market (2020-2022): rate increases of 15-40% year-on-year; capacity withdrawal; strict underwriting.

Softening (2023-2024): rate rises slowed to single digits; capacity returned; underwriting eased.

Softer (2025-2026): flat to negative rate movement on clean risks; new capacity entering; competitive appetite for good business.

What it means for professional firms

Where the market may go

Insurers have signalled discipline — margins matter, prior claims cycles are remembered.

Consumer Duty (PRIN 2A) and BSA 2022 exposure will continue to shape appetite.

New entrants tend to enter softer markets — some capacity may retreat if losses rise.

What firms should do now

  1. Approach renewal early — 12-16 weeks lead time.
  2. Refresh the submission with full context.
  3. Consider expanding the market approached where cover terms matter.
  4. Discuss aggregate limit sufficiency given softening rates.
  5. Confirm run-off and retroactive terms remain fit for purpose.

Frequently asked

Is now a good time to renew?
For clean risks, generally yes — rates are competitive. For difficult risks, market discipline remains.
Should firms switch broker in a soft market?
Rate is only one factor. Continuity, wording quality, and claim handling matter more than cheapest price.
How long will the softer market last?
Cycles run 4-7 years typically. The current soft phase may run into 2027-2028; watch for insurer results.
Are new insurers reliable?
New capacity comes from various sources — from Lloyd's syndicates to standalone MGAs. Financial strength ratings matter.
Does soft market mean lower cover?
Lower rates don't mean lower cover — often insurers compete on wording. Read the wording carefully.
What if my firm has a claim mid-cycle?
Rate can spike materially. Broker involvement to present the claim in context matters more when the market is softer for others but not for you.

Related

Speak to a specialist broker
Get a considered PI quote from Apex
Get a quote Speak to a broker
Apex Insurance Brokers Limited is authorised and regulated by the Financial Conduct Authority. Firm reference number 724952. Registered in England and Wales, company number 07014570.