Insurance markets maay not be fit for purpose to cater to the needs of entities big and small in finance, a now unduly "litigious sector of the economy", the insurance sector analysts at JP Morgan, in conjunction with consulting actuaries firm Taylor Fry, argued in their annual insurance sector report yesterday. This report showed the insurance industry is likely to enjoy continued high single digit growth in its bread-and-butter general insurance business, although the "underwriting performance of certain classes continues to be problematic".Professional indemnity insurance stands out in terms of poor claims trends, both in terms of rising dollar value of claims, and the frequency of claims.Kevin Gomes, an actuary at Taylor Fry and co-author of the report, said PI was becoming known as a "class in crisis" with directors and officers insurance in particular trouble, leading to very large premium increases and exclusions. Problem areas include directors and officers insurance, where mushrooming class actions have spooked insurers and created situations where coverage in "litigious sectors of the economy" - notably those in the financial sector  - are becoming effectively uninsurable.The role of the Hayne Royal Commission into the Banking Superannuation and Financial Services Industry in highlighting poor practices is partly the cause of this, and AMP is a good example, with five class actions underway, Gomes said"Insurers will ask for very large premium increases for business they don't want to write," he said."Effectively, if a premium is unaffordable, that's as good as withdrawing from the market." JP Morgan's lead analyst Siddharth Parameswara observed that "the action [insurance firms] are taking is to increase deductibles, so the insured has to take a large amount of the risk," he said.   The other item that is creeping into the market is the start of exclusions for securities class actions as insurers look to control their risk exposures.Given these trends and the imminent release of the final report by Commissioner Kenneth Hayne, the analysts, led by Parameswaran, took time out from their set piece product line based review of the insurance industry's performance to comment more generally.There was a long list of "generic issues" which will affect all services entities. Of these, the first one on the list was the likely dismantling of a "buyer beware" approach to doing business in financial services generally, to be replaced by a duty of care to customers.Another point emphasised by the JP Morgan report is that the vast majority of the transgressions highlighted related to non-enforcement of existing law suggesting that few new regulations, if any, are likely to emerge from the commission.Further comments by the JP Morgan and Taylor Fry analysts at their media conference yesterday indicated that if any banks were to try offloading their insurance arms, these deals would need the approval of the Australian Competition and Consumer Commission. And in this context, the ACCC has become "much harsher in looking at deals" than in the past," they said. This more than likely rules out IAG, the largest general insurance provider from buying