Financial Institutions & Professional Services: Emerging Liability Trends for 2026

Our 2026 Specialty Lines report highlights significant developments affecting Financial Institutions and Professional Services firms — particularly around regulatory shifts, economic pressure and evolving fraud risk.

Financial Institutions: Regulatory & Fraud Exposure

Three areas stand out:

1. The Motor Finance Ruling

Legal developments in motor finance are expected to drive increased scrutiny and potential claims activity across lenders and associated intermediaries.

2. Private Equity & Transactional Activity

Heightened valuation sensitivity and post-transaction disputes are contributing to increased litigation risk.

3. Social Engineering & Crime

Sophisticated fraud techniques are driving complex claims under Crime and Financial Institution policies, often linked to cyber events.

Professional Indemnity: Sector-Specific Pressures

Across construction, legal, accounting, surveying, valuation and property management sectors, we are seeing:

• Increased claims frequency in complex construction environments

• Heightened scrutiny on professional advice during economic volatility

• AI usage in advisory roles raising questions around duty of care

• Evolving negligence claims tied to valuation and regulatory compliance
  

For Professional Services firms, innovation and technology adoption must be carefully balanced with professional standards and documentation discipline.

Practical Considerations for 2026

• Review Crime and Social Engineering extensions carefully

• Stress-test Professional Indemnity limits against inflation and project size

• Evaluate AI governance policies within advisory roles

• Ensure policy wording reflects actual service delivery models
  

In an environment of regulatory evolution and economic pressure, proactive review is essential.