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...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

FCA acknowledges investment trust platform clash and proposes changes in call for wider CCI input

FCA acknowledges investment trust platform clash and proposes changes in call for wider CCI input

Final rules outlined in 2025

Eve Maddock-Jones
clock 19 December 2024 • 6 min read
WealthTek boss John Dance charged with £64m fraud and money laundering

WealthTek boss John Dance charged with £64m fraud and money laundering

‘One of the most serious and largest frauds’ ever investigated by FCA

Jenna Brown
clock 19 December 2024 • 2 min read
Number of financial firms failed by FSCS increases in October and November

Number of financial firms failed by FSCS increases in October and November

Including Charterhouse and Advice & Wealth Management Solutions

Isabel Baxter
clock 18 December 2024 • 2 min read