View more on these topics

Crunch to raise PI costs

Professional indemnity insurance premiums for mortgage brokers of less than £500 are likely to be a thing of the past, says PI broker PYV.

In its 2008 report into the PI market for mortgage brokers, PYV says the increased volume of claim notifications and other effects of the credit crunch are hardening the market.

Chief executive Neil Pointon says insurers are reviewing the terms on offer to mortgage brokers. He says deals of £200 a year could be found last year but market conditions mean deals below £500 may disappear.

Pointon says: “The credit crunch, while considered by some to be an almost global threat, is expected to cause a wave of claims against UK professional advisers with direct involvement in financial and property markets. The reasoning is obvious as, when prices fall, people face losses on their investments and look for someone else to blame.”

He says even if such allegations do not result in successful claims, defence and admin costs will be incurred.

Pointon also says brokers who carry out general insurance activities face higher limit of indemnity costs due to the euro’s rise against the pound, as the insurance mediation directive requires firms to carry minimum limits based on euros.


Triple crowns for Money Marketing

Money Marketing won a hat-trick of awards at the prestigious Headline Money awards. Chris Salih won trade investment reporter of the year, Tanya Powley won trade mortgage reporter of the year and Paul McMillan is trade journalist of the year.


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm