Renewal diagnosis · PI

Why did my PI premium go up? The five reasons and how to tell which apply

Reviewed by Matthew Bartlett, Director, Apex Insurance Brokers Limited (FCA FRN 724952) · Published 14 July 2026

Your PI renewal quote is materially higher and you want to know why. This page is the diagnostic. Five reasons account for almost every material PI premium increase — and each has a different practical response.

Reason 1: Sector-wide market movement

The whole PI market for your profession has hardened. Insurers are pricing up across their book, not just yours.

Signs. Peers report similar increases. Trade press reports capacity contraction. Named insurers announcing sector exit or portfolio restructure.
Typical impact. 5-15% in a normal hardening cycle. Higher in serious hardening (2018-2021 solicitors' PI, 2020-2022 general PI post-COVID).
Response. Remarketing helps only marginally because the whole market has moved. Focus on structure — excess, aggregate, sub-limits.

Reason 2: Your incumbent insurer is exiting the class

Your renewal quote isn't really a quote — it's a signal for you to leave.

Signs. Premium jump well above sector movement. Terms have tightened materially. Insurer non-committal about future renewals. Trade press reports the insurer exiting your profession.
Typical impact. 50-100%+, often with restrictive terms.
Response. Treat as effective declinature. Engage a specialist broker with wholesale market access immediately. Remarketing is not optional here.

Reason 3: Your claims history moved you into a higher rating band

A notification, paid claim or loss-ratio deterioration since last renewal has changed the underwriting picture.

Signs. Notification or claim during the past 12 months. Loss ratio above 100% over the last 3-5 years. Reserved-but-unpaid claim increased in size.
Typical impact. 15-40% for a modest claim with clean remediation. 50-200%+ for a serious loss or pattern.
Response. Present the remediation story properly. Consider a specialist broker for difficult-risk placement. See the prior-claims page.

Reason 4: Your practice profile changed

The risk you presented last year is not the risk the insurer is now underwriting.

Signs. New practice area (DB transfers, BSA-touching architecture, higher-risk conveyancing). Materially higher fee income. New personnel with prior claims record. Change of professional-body regulator.
Typical impact. 10-50% depending on nature of change.
Response. Update the presentation to fully disclose the changes. Consider whether the practice mix warrants a specialist broker with wider market access.

Reason 5: Underwriter judgment on non-numeric factors

Consumer Duty implementation, complaint volume, financial resilience, personnel departures — things that don't show on the loss run but drive the number.

Signs. No apparent numeric reason for the increase. Insurer references ‘risk-profile factors’ or ‘portfolio-quality assessment’ without specifics.
Typical impact. 10-30%, sometimes more.
Response. Push for specific reasons in writing. Address the underlying issue — documented Consumer Duty implementation, complaints procedure, financial-resilience narrative. Consider remarketing if the incumbent's assessment feels unfair.

The diagnostic checklist

What did peers with similar profiles pay this year? (Sector movement check.)
Is your incumbent still writing your sector in general? (Insurer-exit check.)
Have you had any notifications or claims in the last 12 months? (Claims history check.)
Has your practice profile materially changed since last year? (Profile-change check.)
Have you asked the insurer for specific reasons in writing? (Non-numeric-factor check.)

Frequently asked

Can two brokers quote the same insurer differently?

Yes, sometimes materially. Broker presentation quality, wholesale-market access, and relationship depth all affect the terms an insurer returns. A specialist broker with strong insurer relationships often produces better terms on the same risk.

Is a 20% PI premium increase normal in 2026?

It depends on the sector and the individual firm. Some sectors are still in hardening cycles; others are softening. For a firm with no claims history change and no profile change, 20% is at the upper end of normal — ask for a specific reason.

If my premium doubled, is it worth remarketing?

Almost always yes, unless your incumbent is one of only two or three insurers writing the whole sector. Even where the market has moved, a fresh presentation to different underwriters may return materially better terms.

Should I ask for a claims record from my current insurer?

Yes, and you're entitled to it. The claims record is essential to any remarketing and to fair-presentation disclosure to a new insurer. If the incumbent is slow to provide it, escalate to the broker or directly to the insurer.

Do I have to explain a large premium increase to my professional body?

For most regulators, no — the premium level is a commercial matter. Where the increase is triggered by a claim or notification that itself is reportable (SRA, ARB, ICAEW rules), the underlying event is what triggers the reporting duty, not the premium change.

What if my broker won't remarket after a renewal shock?

Ask why. If the answer is that they've already tested the market and the incumbent is genuinely competitive, get that in writing. If they're unwilling or unable to test the market, that's a reason to engage a specialist broker for a second opinion.

Can I ask for a two-year policy to lock in the rate?

Some insurers offer multi-year deals in stable markets; rare in hardening cycles. Discuss with the broker — a two-year policy trades flexibility (can't remarket easily mid-term) for rate certainty.

What if I think my broker's commission is the reason the price went up?

In the UK, commercial-customer commission must be disclosed on request under ICOBS 4.4. Consumer Duty fair-value assessment applies. If you suspect commission stacking, ask for the disclosure in writing. Any competent broker will provide it.

What might your PI premium look like?

A guideline range built from the premiums insurers have actually quoted on risks we handle. Pick your profession and enter a few details — it updates instantly.

Profession

Annual fee income — gross, last 12 months

Limit of indemnity

Any claims history?

Any higher-risk work? — e.g. large or overseas projects

Guideline range — this is not a quote

Choose your profession and enter your fee income to see a guideline range.

Get an actual quote →

How these figures are produced

This guide is built from Apex's own market data: the premiums insurers have actually quoted and charged on professional indemnity risks we have handled. Each night that data is aggregated into anonymised rate bands by profession, fee income and limit of indemnity. No client information is published — a band only appears where it contains at least five separate records, and unusually high premiums are excluded so a single atypical risk cannot distort the guide.

The range shown spans the typical spread of recent market outcomes for similar risks. Individual quotes can fall outside it in either direction. Figures exclude insurance premium tax at 12%.

This calculator is not a quote and is not an offer of insurance or advice. Your actual premium depends on full underwriting of your business, including your activities, claims record and insurer appetite at the time.