FCA review finds 'clear non-compliance' among PI insurance firms

'Significant concerns' on exclusions

Tom Ellis
clock • 2 min read

Some firms offering Professional Indemnity (PI) insurance do not comply with regulation rules, the Financial Conduct Authority (FCA) has concluded in a review of the market.

In an assessment of 200 general insurance intermediaries, the regulator said it found clear examples of "inadequate policy limits or exclusions which exclude all activity" among PI insurers, breaching its rules. Although the regulator found there is "sufficient breadth within the market to provide choice" for PI cover, it said a number of policies contained exclusion clauses that gave the FCA "significant concerns" the effect of the clauses could reduce the scope of cover that is required by MIPRU - the Prudential sourcebook for Mortgage and Home Finance Firms, and Insurance Intermediari...

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