Insurers provide insurance cover including professional indemnity, for hundreds of different occupations.
We inherently know that the risks of each occupation are different – a florist working in a flower shop carries different risk profile to a gynecologist working in a private hospital. The trouble is that often these different risks get lumped together. So lower risk occupations end up subsidising the premiums of the higher risk occupations.
The subsidising of premiums we see playing out in the insurance market. For example Project People who work in offices getting lumped together with those who work in construction and mining.
Why is this?
Perhaps it’s the use of similar job titles? The term “Project manager” is used both on building sites as well as offices roles. Or maybe some insurers are not familiar with the deeper nuances of project occupations.
So rather than paying for the risks of others, the opportunity is to design (and then keep refining) the insurance product around the specific risks.