What's Happening?
Pen Underwriting, a subsidiary of Gallagher, has announced a new capacity agreement with Bridgehaven, a hybrid insurer, to bolster its UK solicitors' professional indemnity (PI) portfolio. This partnership, confirmed on August 18, 2025, will enable Pen Underwriting to offer PI coverage to a range of legal practices, from sole practitioners to firms with over 20 partners. The collaboration is designed to leverage Bridgehaven's hybrid insurance model, which combines fronting insurer capabilities with reinsurance capacity, allowing for coverage of larger and more complex risks. Tom Downey, Pen Underwriting's chief executive, emphasized the strategic nature of this partnership, highlighting the alignment of both companies' priorities in transparency, trust, and collaborative risk sharing.
Why It's Important?
The partnership between Pen Underwriting and Bridgehaven is significant for the UK legal sector, particularly for solicitors seeking reliable PI coverage. By utilizing Bridgehaven's hybrid model, Pen Underwriting can offer more comprehensive and sustainable insurance solutions, which is crucial for law firms dealing with diverse legal areas such as personal injury, criminal law, and immigration. This collaboration not only strengthens Pen Underwriting's position in the PI market but also supports the growth of innovative and profitable insurance portfolios. The deal reflects a broader trend in the insurance industry towards hybrid models that enhance risk management and capacity sharing.
What's Next?
Pen Underwriting's partnership with Bridgehaven is expected to lead to further developments in the solicitors' PI market. The collaboration may prompt other insurers and MGAs to explore similar hybrid models to improve their offerings. Additionally, Pen Underwriting's ongoing relationship with SiriusPoint, which provides capacity for its international PI portfolio, suggests potential expansion and diversification of its insurance products. Stakeholders in the legal and insurance sectors will likely monitor the outcomes of this partnership to assess its impact on market dynamics and risk management practices.
