Griffiths & Armour Europe DAC PII

arrive at a position which allows critical fire safety work to be undertaken, whilst preserving the insurance market’s support for the potential liabilities that flow from that work. Failing that, there are more radical options and we continue to advise as to the shape and structure of those potential external solutions. �������� without first speaking to your regular G&A contact. The cover we provide in every other respect is largely unchanged from previous years – indeed there are several minor improvements to it – and the fact that we continue to deliver a wide ‘legal liability’ policy with few exclusions of contractual liability is testament to everyone involved in the process. For now, it is absolutely critical that you ��������������������

������� �������m 2021 will see further increases in premium. Whilst the impact on any individual client will to some extent depend upon the specific profile of that firm, insurers are already signalling their intentions for a step-change in pricing and we offer some advice on appropriate next steps.

Context

In September we issued our Report ‘ ��������� ’, which reviews the ten highest value settlements concluded under our construction facilities during the calendar year 2019. It considers one significant tier of settlements, to which we need to overlay the attritional effects of the many further tiers of claims that sit beneath and are a significant factor in themselves. Each claim tells a different story and helps to illustrate that whilst some claims grow out of a toxic mix of coexistent factors, other high value claims can be traced back to a single innocuous event which was sufficient to cause a major problem. The conclusion is that the largest claims are becoming larger and attritional claims are not reducing in volume. This is reinforcing a view held for 10 years or more that premium levels have fallen to a level which are inadequate to offer a realistic prospect of underwriting profit and additional correction is now urgently required.

This sits within a context where wider market analysts are suggesting price increases between