European PI insurance GWP could top €7bn

According to the study, compiled by Finaccord, gross written premiums for the cover reached €5.8bn in 2010, up from €5.2bn in 2006.

The study, covers ten major European countries; Belgium, France, Germany, Italy, Netherlands, Poland, Spain, Sweden, Switzerland and the UK.

Commenting on the research, Alan Leach, director of Finaccord, said: "Across the ten countries, there are over 6 million enterprises potentially eligible for professional indemnity insurance."

"For some, holding professional indemnity cover is compulsory in order to exercise their profession while for others, it is optional. However, increasing take-up rates among those for which it is often not obligatory will be one of the drivers of the market in future, notably in the IT, management and financial consulting sector, which is the largest segment with 1.5m insurable enterprises."

As a part of its research, Finaccord surveyed 1,100 associations across Europe and found that 39% had established professional indemnity cover schemes.

The schemes are most commonly used the UK where 57% of associations had such schemes in place. Germany was 52% and Italy 48%.