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's 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.”