Mortgage brokers 'need to improve services' - Professional Indemnity Insurance

16/10/2009

Written by Neil Pointon

It is imperative for mortgage brokers to take steps to improve their services in order to obtain competitively-priced Professional Indemnity (PI) insurance, it has been suggested.

In a letter to FinancialAdviser, Kevin Paterson, sales and marketing director for Assurant Intermediary, states that recent increases in the number of professionals found guilty of fraudulent activity has meant rising PI rates have come as no surprise.

"Cover has been restricted and some insurers have pulled out of the market completely, making it increasingly difficult for intermediaries to secure affordable cover," he states.

However, while moves by the Financial Services Authority to ban unscrupulous brokers and impose more regulation will help improve the industry as a whole, Mr Paterson claims that respectable intermediaries need to be seen as professional.

This means they need to keep on top of paperwork and ensure that all "processes are air tight".

And taking such steps will not only benefit the industry's image, but will also be "good news for future PI rates and ultimately good news for customers".

Writing in the Insurance Times earlier this year, Andrew McBride pointed out that brokers need to encourage their clients to have effective record-keeping practices and be aware of risk management as claims for mortgage fraud have increased over recent years.

Click here for more information about Professional Indemnity for mortgage brokers.

Click here for more information about Professional Indemnity in general.

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.

Click here to go back to archive list