View more on these topics

Look to long term as PI rates set to harden

PYV is warning that professional indemnity insurance rates are likely to rise.

Chief executive Neil Pointon says the recent influx of longer-term policy terms being offered is typically a signal that the market is set to harden.

Pointon says a longer-term policy could be useful to advisers if they want to safeguard themselves against the risks of the market turning.

He says Aifa has warned that capacity might be used up by foreign IFAs as a result of Mifid, which Pointon says suggests that November 1 might be a turning point. But he adds that as many insurers’ reinsurance deals fall due on January 1 every year, this is when we could see the market start to bite.

He says the turbulent stockmarket and loss of confidence in the housing market could lead to underwriters’ appetites for writing PI for IFAs and mortgage intermediaries disappearing overnight.

Pointon says: “Usually, PI is offered as a 12-month contract but the current very soft market conditions have allowed insurers to review this position, with many offering 18-month periods and some offering two-year deals. Clients should seriously consider taking advantage of these offers as it could be a way of locking in highly competitive terms. Historically, the offer of longer-term policies has heralded the hard market around the corner.”

Recommended

The point of no return

New proposals could significantly reduce the number of taxpayers reporting chargeable lifetime transfers

Cash control

What resources are available to help people take charge of their financial affairs?

In the Pink

PINK HOME LOANS
Kensington Mortgages Near Prime Three-Year Fixed BTL

James Hay extends wrap fund choice

James Hay is adding six funds to its wrap platform, bringing the total to 1,246 funds from 54 firms. They include Norwich Union global balanced income and Capita CF OLIM UK equity.

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    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

    Email: customerservices@moneymarketing.com