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PI pledge on cover in &#39problem&#39 areas

Magian Mutual, the newly FSA-authorised professional indemnity insurer, has pledged not to exclude IFAs simply because they have exposure to products such as mortgage endowments, split caps or structured products.

Speaking to Money Marketing after its authorisation last week, Magian Mutual director Glyn Morris says he will not turn down a firm just because it has sold certain types of products under FSA scrutiny.

He says it is much more relevant how long the firm has been in business, and the size and number of cases involved.

While reiterating that a strict underwriting process will be applied to firms looking for cover, Morris rejects the approach taken by other PI insurers.

Morris says: “It is a question of qual-ity. What we are looking for is quality and quality itself does not exclude any particular area of business.”

Alan Steel Asset Management managing director Alan Steel says: “If they are going to offer coverage on a sensible business they are going to have a monopoly on their hands. I find it strange though that it is prepared to not only take IFA business but do it without excluding firms with exposure to these types of products.”

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