A third of advisers have seen an increase in their professional indemnity insurance premiums this year, Apfa research shows.
A survey of 271 advisers carried out by NMG on behalf of the trade body found that 31 per cent of advisers have seen their PI premium rise, while 44 per cent received the same premium as last year, and 8 per cent were offered a reduced premium.
Among those whose who have seen an increase, premiums rose by 14 per cent on average.
Apfa director general Chris Hannant says: “These findings offer further evidence of a hardening insurance market for advisers, driven by a compensation culture and the legacy of events like Arch cru, Keydata and Catalyst.
“They also highlight further the need for a long-stop for advisers. Without one, the liabilities of companies have no limit, and therefore when insurers calculate risk it is open-ended – which drives premiums up.”
Experts warned last week that advisers struggling to obtain comprehensive PI cover in a hardening market may be compromising their independent status.
Read Money Marketing’s full report on the state of the PI market here.