Will PI insurance be affected by hung parliament?

10/05/2010

Written by Tom Davis

For many, last week's election result will not have been a surprise, but as the three parties remain locked in discussions, it remains to be seen how the hung parliament will affect the economy.

The British Insurance Brokers' Association (BIBA) has announced that it will be keeping a close eye on proceedings over the coming days to see which government is formed.

It will also be looking at how new policies and the appointment of individual MPs will impact on members of the insurance industry, in addition to the UK as a whole.

Eric Galbraith, the group's chief executive, said: "Big challenges and opportunities to the political landscape are happening and BIBA will be working hard to establish relations with those who become important stakeholders to insurance brokers and BIBA's manifesto issues."

He added that the group has already met with members of the various shadow cabinets to ensure that its members' interests are well represented.

However, should the outcome of the election have a negative effect on the economy, prompting a double dip recession, things could get difficult in terms of professional indemnity (PI) insurance.

Indeed, chief executive of PYV Neil Pointon recently told the Financial Times Adviser that PI insurance rates could harden in the event of a double dip downturn.


© 2010 Adfero Ltd.

If no story is shown above, please visit our archive section, acessible via the archived stories and press coverage link at the foot of the PYV home page.

Click here to go back to archive list