A leading law firm is warning that professional indemnity insurers may take action against reinsurers to recoup pensions review losses.
Law firm Reynolds Porter Chamberlain is arguing that PI insurers pension review cases should be considered as one case for the purposes of determining the proportion they pay and the proportion passed on to reinsurers.
Currently because of excess, PI insurers are taking most of the hit for review cases.
It is threatening action against the reinsurers as a result.
Partner Jonathan Davies says: "Inappropriate sales of pensions should be treated as one case. This would allow insurers to aggregate all their pensions mis-selling claims and shift the tremendous costs they face on to reinsurers.”