Aggressive underbidding reported as AIG claims spoils of solicitors' renewals
Zurich has denied rumours that it lost a quarter of its market share during the recent round of solicitors' professional indemnity insurance renewals.
Industry sources said that Zurich dropped 25% of its business during the renewal period because competitors reduced rates by as much as 20%, which Zurich failed to match.
But Zurich said that its own early assessments showed that the 25% figure was "wholly inaccurate".
A spokeswoman said: "We are in the process of reporting back to the Assigned Risk Pool.
"It would therefore be inappropriate to comment on the situation regarding renewals until we have the overall market figures."
Insurer WR Berkley admitted that its early figures showed a reduction in the number of renewals that the company had written.
WR Berkley's chief executive Stuart Wright said some surprising quotes had been made as bidding companies took an aggressive approach to securing business.
Wright said: "WR Berkley has not finalised its figures, but the company is satisfied with its core book of business. We believe we have priced at a rate that will make us a profit."
Market sources reported that AIG added substantially to its books during the renewal period by offering rate reductions of up to 20%, which the insurer has denied.
Marc Carver, AIG manager of public liability for UK and Ireland, said: "There have been no reductions made to rates.
"It is true that we have experienced growth but this is as a result of widening our panel of brokers, lowering our deductible for greater penetration in the SME market and acceptance of a portfolio transfer from HSBC.
"We anticipate a growth of £16.5m to £20m, which is not a big increase and is in line with the gradual creep upwards we have experienced in previous years," he added.
