The FSA's temporary professional indemnity insurance modifications have failed to have any significant impact in helping IFAs get cover, according to leading PI brokers.
Although the modifications, announced last month and due to run until July, are considered to be a step in the right direction, brokers claim the changes came too late to help in the busy November renewal market.
They say that in the run-up to the end of the year, most insurance companies are running out of capacity anyway, meaning the full impact of the modifications will not become apparent until next year.
The FSA has softened its PI stance by shifting the risk from PI providers to IFAs, with advisers paying excesses on every claim.
Collegiate Insurance Brokers marketing director Fergus Chappel says: “A lot of PI insurers have fundamental concerns about the underlying nature of risk and the changes may still not provide adequate comfort.”
PYV managing director Ian Boscoe says: “The problem is much more general than FSA requirements. The problems in the whole insurance world, from corporate scandals to threat of war, have been thrown into the melting pot. Every loosening of mandatory terms will be useful but we have to wait for changes in the international circumstances to have an impact on the market.”