Insurers facing rise in PI claims

With the commercial and residential property sectors under increasing pressure, professional indemnity (PI) insurers are bracing themselves for a significant rise in claims according to professional liability risk consultants, Flaxman Partners.

As falling property values and an unstable economy inevitably lead to an increase in defaulted loans and a growing rate of repossessions, lenders may well look to recoup their losses by suing the surveyors, lawyers and accountants involved in the valuation, application and conveyancing processes.

Roger Flaxman, managing partner at Flaxman Partners, commented: “The predicted decline in property values, a slowing economy and the inevitable growing number of repossessions and property owners