Professional liability insurance: inflation adjustment

EIOPA launched a consultation – pursuant to the Insurance Distribution Directive (IDD) – on the draft of the amendment to the Regulatory Technical Standards (RTS) for the adjustment of the basic amounts for professional indemnity insurance (PII) and for the financial capacity of insurance intermediaries.

Pursuant to the IDD changes to the minimum amounts of PII insurance shall be based on the rate of inflation.

As the Harmonised Index of Consumer Prices (HICP) increased by 20.32% in the period between 2018 and 2022, the new base amounts for professional indemnity insurance cover would be the following:

  • The basic amount of PII, applicable to each claim, shall increase from EUR 1,300,380 to EUR 1,564,610 (+ EUR 264,230);
  • The aggregate basic amount per year of PII shall increase from EUR 1,924,560 to EUR 2,315,610 (+ EUR 391,050);
  • The basic amount of the financial capacity shall increase from EUR 19,510 to EUR 23,480 (+ EUR 3,970).

The public consultation terminates on  May 6, 2023.