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PYV says IFAs are opting for wider PI cover

A major IFA PI broker has found that although the FSA&#39s provisions for solving the PI crisis have “greatly eased the burden”, an increasing number of IFAs are taking additional cover from a second PI provider to help cover big excesses.

Broker PYV operations director Neil Pointon says that IFAs are investing in extra protection over regu-latory requirements to cover growing excesses.

Following CP193, published last July, the FSA has eased rules, allowing some well capitalised firms to offset capital to cover exclusions in their PI cover.

However, Pointon says IFAs are trying to find the best cover possible which, with current levels of supply, is starting to include higher levels of excess layer coverage.

PI provider Magian Mut-ual director Glyn Morris says because insurers are not offering the degrees of cover they used to, irrespective of regulation requirements, some IFAs think that greater cover is needed for their businesses.

Pointon says: “Demand for an excess layer reflects restructuring of the way that supply has been arranged. Over the regulatory requirements, IFAs are seeking to invest in extra protection.”

Morris says: “Some competitors will not offer more than £1m cover and some IFAs are buying on the perception that, irrespective of regulation, greater cover is needed.”


No impact on current surrender values

Standard Life asserts there will be no impact on current surrender values, transfer values or payouts following the announcement Iain Lumsden has resigned as chief executive and it is reviewing its mutuality. It also maintains there will be no impact on unit-linked and non with profit policy holders.

LLoyds TSB finance director to leave company immediately

Lloyds TSB Group has announced that its group finance director Philip Hampton is to leave the company immediately. He will be compensated in line with his contractual entitlement. Lloyds says since Hampton joined the company in June 2002 its strategic direction has changed, resulting in a focus on organic growth within the core businesses. It […]

FSA to probe accounting and monitor review of mutuality

The FSA is to review Standard Life&#39s accounting procedures and says it will monitor the life office&#39s own strategic review into its mutual status. Independent experts will investigate the divergence between Standard&#39s most recent calculation of liabilities and earlier figures. Protracted negotiations between the FSA and Standard over the interpretation of the new realistic reporting […]

Turn-round as IFAs back move to rethink status

IFAs have overwhelmingly backed Standard Life&#39s decision to consider demutualisation despite having championed its policyholders&#39 rejection of a carpetbagging attempt three years ago. Seventy-three per cent of respondents in a poll of 117 Positive Solutions RIs say they endorse the move, a massive reversal from early 2000 when 89 per cent of IFAs supported policyholders […]


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