IFA PI insurance rates 'yet to harden' substantially - Professional Indemnity for IFAs

02/10/2009

Written by Neil Pointon

Despite the difficulties being experienced in the wider insurance markets, it still remains possible for most independent financial advisers (IFAs) to obtain a good deal on Professional Indemnity (PI) insurance, it has been suggested.

In an interview with Financial Adviser, Neil Pointon, chief executive of PI broker PYV, points out that despite the current difficult economic climate, the buyers of IFA PI continue to experience relatively competitive rates.

However, he suggests there may be some hardening in the market - worth around £40 million a year to the PI sector - as the credit crunch continues and also due to issues in the investment and property markets.

Moves by some PI insurance providers to create additional capacity have so far prevented rates from hardening, Mr Pointon adds.

"What we are seeing is a variable PI market with some insurers holding prices, some increasing prices and some reducing cover by adding exclusions," said Mr Pointon. "There has never been a greater need to have access to a specialist broker who you can turn to for advice and who can help you to find the best deal from a complicated market," he added.

But IFAs may not be alone in experiencing rising PI rates, as a recent Financial Adviser article noted insurance premiums could rise by as much 100 per cent over the next two years, with mortgage brokers set to be the first group to be affected.

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PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.

(c) 2009 Adfero Ltd.

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