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Sofa says the worst is over in PI cover crisis

The cost of professional indemnity insurance for IFAs has peaked, with the tide starting to turn for practices still struggling to afford cover, according to Sofa.

Managing director Brian Lawless says he thinks the worst is over for advisers and that PI premiums, which in many cases have doubled over the last 12 months, look set to fall slowly.

Lawless&#39s views are encouraging news for advisers such as EZI UK managing director Kevin Morgan who has spent days completing 52-page forms to renew his PI cover by the October 1 deadline.

Lawless says: “I think that the situation has improved slightly – the edge has gone but it is a long way from being solved. For those without cover, PI will remain firmly at the top of their agenda but we will see a slight easing of the situation after the next renewal date.”

Morgan says: “I believe the PI market has peaked in terms of risk and normality will return. Hopefully, there is now increased understanding of the situation as a whole in the market, with more new players coming.”

Millfield chief executive Paul Tebbutt says: “I do not think the problem has eased at all. PI continues to be an issue for the whole industry. Premiums have not gone down despite what the FSA is saying.”


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Nationwide launches new fixed rates

Nationwide has launched a new range of fixed rate mortgages following recent movements in the money markets. The building society is now offering a two-year fixed rate mortgage from 4.39 per cent up from 4.09 per cent. Also available is a three-year fixed rate from 4.69 per cent up from 4.39 per cent and a […]

Building Societies put in strong performance in 2002/2003

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Two thirds of consumers like long term fixes – L & C

Nearly two thirds of borrowers (63 per cent) say they like the idea of long term fixed rates, according to a financial survey carried out by London & Country. Borrowers who were not keen on the idea of long term fixed rates (37 per cent) said this was down to the level of interest rate […]

Leading Edge June – Investment panel debate

RLAM’s asset class specialists discuss some of the findings from the panel session at our recent Investment Conference. By Rob Williams, Head of Distribution Welcome to the latest edition of Leading Edge. It has been an eventful six months since the last e-zine. The European Central Bank announced ongoing stimulus measures, while the immigration crisis in Europe threw the […]


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