The withdrawal of Suncorp Metway from the PI market has undoubtedly caused waves for the 80% to 95% of barristers the company used to cover in Victoria, Queensland and NSW. But whether they will obtain replacement cover by the June renewals period is hardly as “uncertain” as Victorian Bar Chairman Robert Redlich QC thinks.

Frank Earl, MD of Arthur J Gallagher Brokers in Sydney, says there is “a lot of market out there; it’s just a matter of getting out and finding it. With a fair amount of capacity, it is just a question of what you will pay.”

Mr Earl, a PI specialist, said the market is especially tight since the withdrawal of GIO/AMP, The St Paul and now Suncorp. “People are looking hard at their books to see if they can make money out of PI.”

A Suncorp Metway spokesman said the company’s withdrawal was not aimed at barristers but at the whole PI market. The decision was based on their PI book that showed the volatile nature of the market and the lack of profitability.

And while people continue to complain about premium increases, Mr Earl said the market is “nowhere near as hard” as it was in 1985 to 1988. “If your commodity was worth 50 cents in 1985 it was up to $1 by 1988.”   

“Underwriting results haven’t been good recently,” Mr Earl said. “The bottom line is you have to pay an appropriate price.”