Actuaries are facing huge increases in the cost of their professional indemnity (PI) cover, according to broking giant Marsh.
Insurers are becoming increasingly alarmed by the disparity between premiums and the size of claims. Concern over multi-billion-pound pension fund deficits has also increased insurers' fear that actuaries could face more litigation.
Speaking to the FT.com Marsh revealed that UK actuaries were being confronted with four-fold increases in the level of their PI premiums.
Ray Brown, a managing director at Marsh, said: "Actuaries are finding it difficult to obtain PI [professional indemnity] cover at an affordable cost. It is undoubtedly having a significant impact on profitability."
Actuaries have traditionally not paid high PI premiums, but this has started to change after multi-million-dollar settlements with pension funds involving actuarial groups such as Towers Perrin.
Brown said: "A lot of issues came into focus after the equity market collapsed, crystallising losses, and people are looking around for someone to blame."
