Professional indemnity insurance underwriter Chubb has announced it is pulling out of the IFA market.
The firm says it is withdrawing with immediate effect after concluding the adviser market was no longer profitable. It is also pulling its cover for surveyors and valuers.
The firm would not disclose how many advisers it currently provides cover for but says it would honour any agreements already in place.
A Chubb spokesman says: “Chubb can confirm it is withdrawing with immediate effect from the surveyors and valuers and IFA professional indemnity lines of business offered through its Lloyd’s Syndicate Club, Chubb 1882. From a profitability standpoint, Chubb has concluded that it is no longer viable to continue these lines of business.
“Chubb will honour any terms currently on offer to brokers on these lines of business. Chubb will no longer accept new business submissions nor will it renew existing business on these lines.”
In July last year, PI insurer Beazley pulled out of the IFA market due to increasing claims and QBE followed in December, saying the market was no longer profitable.
Earlier this year, PI brokers warned IFAs could see professional indemnity insurance costs soar due to the departure of major insurers from the IFA market and increasing claims.