PI hardening predictions 'yet to happen' - Professional Indemnity Insurance for IFAs and Mortgage Brokers

15/01/2010

Written by Neil Pointon

Predictions from one firm that Professional Indemnity (PI) insurance costs will surge are yet to materialise, it has been revealed.

However, underwriting director Richard Turnbull of Collegiate tells IFAOnline that while the 50 per cent rise in PI for independent financial advisers (IFA) may not have happened "claims have been through the roof".

Mr Turnbull suggests that as such the significant increase in premiums is due to take place at some point in 2010, as IFAs have been hit with legal action following falls in investment returns over recent years.

"The perception of an IFA's advice is very clearly linked to the investment return and although there has been a mini rally, we are still 30 per cent down on 2007," he tells the publication.

Speaking in October, Neil Pointon, chief executive of PI broker PYV, told Financial Adviser that IFAs were still be able to obtain competitive PI deals at that time despite the difficulties caused by the ongoing financial crisis. As a specialist Lloyd's Broker, PYV are able to approach the widest range of insurers.

© 2010 Adfero Ltd.

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