The November professional indemnity insurance renewal season was not the crisis it could have been compared with last year or even April's renewal period, according to PI brokers and underwriters.
November, normally the busiest month in the PI calendar, has not been as busy as many thought and the industry says this is due to the FSA's more relaxed attitude.
PI insurer Magian Mutual says the firm is busier this month than in November because the FSA is not leaning as heavily on firms which are unable to find cover.
Broker PYV says while IFAs may not have wanted to embrace the reforms delivered in CP193, such as offsetting cover against capital and taking policies with exclusions, they have been forced to due to the state of the market.
Both firms say November remained busy but it was not as bad as it could have been given the state of the IFA PI market in the last 12-18 months. They agree that this is not a reflection of the inc-reased cover available in the market but because of the
flexibility shown by the FSA.
Magian Mutual director Glyn Morris says: “All the urgency has gone out of the market because the regulator is not pushing firms to find cover. There is the distinct impression that the FSA is easing off firms with-out cover, giving them time to find cover.”
PYV operations director Neil Pointon says: “The levels of business are similar to last renewal season but IFAs are calmer because of the FSA's attitude which appears to be more understanding of the fact there is a limit to the compliant cover available in the marketplace.”
FSA spokeswoman Louise Buckley says: “It is encouraging that our reforms are helping to open up the market and are assisting firms in finding PI cover.”