IFAs are set to be hit with a hike in professional indemnity insurance (PII) premiums as increasingly selective insurers respond to a sharp rise in claim values, warns Tenet.
The PII market will harden due to a combination of a 40% rise in claim values, increased fraud and a more intrusive regulatory approach which could see the Financial Ombudsman Service doubling award payments to £200,000, according to Tenet. "Advisers should not underestimate the potential impact and must be encouraged to undertake a comprehensive review of policy cover, especially exclusions and excesses, as PI providers are sometimes guilty of not doing enough to highlight them," says Tenet distribution & development director Keith Richards. The financial impact will not necessarily ...
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