On 24 March 2026, Wren Insurance Association Limited (“Wren”), one of the only insurers providing substantial professional indemnity insurance (“PII”) for cladding and fire safety related claims, announced its solvent exit from the PII market, effective from 01 July 2026.
As a well-established mutual insurer, the Wren had become well known in the construction sector for its rigid approach to underwriting appointment terms which in turn shaped the market-standard for architectural appointments and how they are negotiated.
In the Wren’s press statement, it became clear that its decision not to restrict or withdraw its coverage for cladding and fire safety related claims following the Grenfell tragedy in 2017 has been a significant factor in its solvent exit. Following the Grenfell tragedy, many PII providers withdrew or reduced the level of coverage they offered for fire safety related and cladding claims given that the number of claims were likely drastically to increase.
However, the Wren continued to provide this coverage and because it is a “mutual,” the expected high number of claims that arose related to works prior to 2019 forced the Wren to increase calls on its members. This ultimately resulted in a considerable number of members deciding to leave the Wren, which in turn meant that the Wren “lacked the necessary size/scale to offer competitive insurance cover.”
The Wren’s departure from the PII market will have consequences for both architects and clients.
As a member-owned firm, the Wren’s policy terms were tailored and shaped by the members themselves, leading to policies that met the needs of practising architects. Architects who hold policies with the Wren will now have to turn to new insurers, who will take a more conservative approach to underwriting. This change will likely mean additional exclusions, reduced coverage and flexibility in policy terms for projects.
The Wren’s decision not to renew PII policies could also mean that many architects could be considered in ‘breach of contract’ as they may no longer meet the PII levels required under their existing appointments and are unable to find a similar level of coverage elsewhere.
Those appointing architects may initially benefit from greater flexibility when negotiating appointment terms in the absence of Wren’s stringent underwriting requirements. However, they will face the risk of appointing architects with limited cover for higher-risk works, as the Wren was one of the few insurers willing to cover cladding and fire safety notification-related claims to such an extent.
At a practical level, both Wren insured architects and those who have appointed them should review their existing appointments and insurance arrangements ahead of 01 July 2026, to ensure continuity of cover and compliance with contractual obligations. Whilst the full impact of the Wren’s departure will be clear once they cease offering renewal policies in July 2026, the market standard for architects’ PII and appointment terms will likely be fundamentally changed, and the industry will have to adapt accordingly.
Key Points / Takeaways:
- Architects who hold Wren policies will need to obtain alternative cover once their current policies expire. New policies will likely be on less favourable and flexible terms, with reduced coverage and additional exclusions creating a significant gap in coverage for historic works.
- Architects may find themselves in potential breach of their existing appointments if they are unable to obtain PII at the levels required under their current contractual obligations.
- Clients and employers appointing architects may benefit from greater flexibility in negotiating appointment terms, but face increased risk where architects hold limited cover for higher risk works, particularly in relation to cladding and fire safety claims.
