K2 Group Holdings Limited (K2 International), the London market arm of K2 Insurance Services, has launched K2 Professional Indemnity Limited (K2 PI), a new division targeting international (non‑US) professional liability business on behalf of a panel of Lloyd’s of London syndicates.
The unit adds a dedicated non‑US professional indemnity (PI) capability to K2 International’s financial lines portfolio, which already includes K2 Professional, focused on US‑domiciled firms, and the recently formed K2 Executive Risk management liability unit following the acquisition of Rising Edge’s book in February 2026.
Softening London PI market
The launch comes as the London PI market has moved from hardening conditions to its softest phase in almost a decade.
Aon's Q1 2025 UK market overview described the PI market as "soft" for both major multinationals and mid-market risks, with rate reductions of 5% to 15% and 10% to 20%, respectively, abundant capacity and insurers competing aggressively for business while offering broader cover and higher limits.
Specialist PI brokers reported that competition intensified further in late 2025, with some professional and design-led risks seeing premium reductions of up to 25% to 30% compared with 2024, an influx of new MGAs deploying PI capacity, and the return of "any one claim" limits and enhanced fire-safety wordings.
Construction PI has been a particular pressure point. Capacity and terms have improved markedly post-Grenfell, but the Building Safety Act 2022 and the first building liability orders are beginning to reshape long-tail exposure for architects, engineers and contractors, prompting underwriters to sharpen their focus on risk selection, claims trends and contractual risk transfer despite softer pricing.
Globally, the professional indemnity segment is expected to continue expanding on the back of rising litigation, regulatory scrutiny and demand from professional services, healthcare, technology and consulting sectors.
For brokers, a Lloyd’s‑backed facility with an international, non‑US focus adds another option for complex or multi‑jurisdictional programs, particularly where clients need access to multinational policy structures, local paper and coordinated claims handling.
Lloyd’s focus on specialist, data‑driven business
The launch aligns with Lloyd’s strategic emphasis on specialist, data‑driven business rather than broad‑based volume growth. Lloyd’s 2024 full‑year results showed gross written premium rising to £55.5 billion, a combined ratio of 86.9% and an underlying combined ratio of 79.1%, with the market stressing disciplined growth and a focus on profitable specialty classes.
Even as some lines such as specialty reinsurance and direct marine and aviation slipped into underwriting loss in 2024, the franchise remained strongly profitable overall, supported by improved attritional loss ratios and higher investment income. Lloyd’s has continued to encourage well‑capitalized, expert MGAs and managing agents to deploy capacity in niche areas where underwriting expertise and data can provide an edge, including professional lines. K2 PI’s entry gives intermediaries an additional route into Lloyd’s for international PI risks at a time when clients are looking for both competitive terms and depth of technical understanding around evolving regulatory, contractual and cyber‑related exposures.
