When rating the risk for professional indemnity insurance, what information is most likely useful to an underwriter?

In the context of professional indemnity insurance, understanding the fees earned by the practice is crucial for an underwriter when assessing risk. Higher fees typically correlate with a higher level of service provided, which can impact the potential for claims. Professionally qualified individuals or firms with higher earnings are often engaged in more complex and potentially higher-risk operations, leading to a greater likelihood of dealing with accidents or errors that can result in claims against them.

Moreover, the fees earned can indicate the overall financial health and stability of the practice, giving underwriters insights into the firm's ability to absorb losses. It helps them evaluate the risk exposure not just in terms of monetary value, but also the nature of the professional services provided. Professional indemnity insurances are generally tailored to the specific activities a practice is engaged in, and the fees earned fundamentally inform the risk profile associated with those activities.

In this context, while the age of the senior partner, the location of the office, and the number of support staff may provide some insights, they do not offer the same direct correlation to the potential for claims as the fees earned by the practice do. The fees give a more quantitative measure of exposure and help inform the pricing and terms of the insurance policy being considered.