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PI rates could be halved as fears are dispelled

Professional indemnity insurance premiums could fall by 50 per cent because problems with IFAs have failed to materialise, says PI broker PYV.

PYV says it has recently been able to negotiate up to 50 per cent reductions in premiums for some IFAs and director Neil Pointon expects excess and conditions terms to improve in the future.

Pointon says there is an additional 25 per cent of capacity in the PI market for IFAs with the re-entry of Chubb Insurance, which started writing IFA business again in July after nearly a year out of the market, and recent moves from other Lloyd&#39s syndicates previously unwilling to write IFA business which are now starting to go after it aggressively.

Pointon puts this down to a lack of scares in the IFA market lately – the problems with endowments have not sparked off an FSA review while split caps and precipice bonds have not become the issues they might have.

He says this, coupled with the flexible new requirements on PI from the FSA, means that PI insurers are less concerned about underwriting IFAs and so the market has grown in capacity and bettered its terms.

Pointon says: “The market for PI has turned and there is now an additional 25 per cent capacity out there, with potentially limitless capacity for IFAs given the small size of the market they represent.”

Aifa director of policy Fay Goddard says: “We are getting a much more positive message back about the PI market at the moment.”



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Professional target as Sofa and LIA members vote for a merger

The merger between Sofa and the LIA is to go ahead following positive votes from the membership of both organisations. Extraordinary general meetings for Sofa and the LIA last week saw 87 per cent of LIA votes in favour of the merger and 75.5 per cent of Sofa votes in favour. The 25,000 members of […]


Guide: day-to-day tasks ​— can your system manage?

This guide from Johnson Fleming will take you through the required communication and also give ideas for additional actions that will ensure your auto-enrolment project is a success. As well as highlighting what is required from a system to ensure it is up to the tasks, an overview of the following is also provided: data validation; data categorisation; employee communication; opt-in process; opt-out process; produce contribution schedule; contribution reconciliation process; upload of member data to pension provider; upload contribution to pension provider; manage salary sacrifice process; enrolment process; re-enrolment process; and management of increased employee queries.


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