Katie Clark
Executive, Technical Underwriting
Committee secretary
With representatives from 22 syndicates across the Lloyd’s market, the International PI Committee stays on top of the emerging developments and trends that the underwriting community faces.
Construction PI insolvencies pose a major threat to the professional indemnity insurance market due to non-recoverable claims, heightened post-insolvency risks and legacy liabilities. This has reshaped underwriting appetite, particularly for high-risk construction sectors, and is an ongoing issue that the committee continues to monitor.
The Building Safety Act 2022 and the Grenfell Tower Inquiry have had a significant impact on PI insurance. For underwriters, this meant heightened exposure to historic claims, especially for cladding and fire safety. This has led to stricter underwriting, reduced appetite, higher premiums, exclusions for high-risk work and a greater focus on run-off cover and risk selection in the construction PI market.
The committee has a legal representative who updates on key legal trends. Recent topics of interest include prior known circumstances exclusions and The Court of Appeal’s judgement in Lonham Group Ltd v. Scotbeef Ltd [2025] EWCA Civ 203, which provides clarification on the application of the Insurance Act 2015, particularly concerning the classification of policy terms as warranties or representations.
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