Almost a quarter of intermediary firms up for renewal of their professional indemnity insurance (PI...
Almost a quarter of intermediary firms up for renewal of their professional indemnity insurance (PII) have still to confirm they have cover in place, according to the FSA.
As at 27 January 2003, in relation to 1,365 personal investment firms which were due to renew their PII cover between 1 September and 30 November 2002, 24% still have to confirm they have cover. Of the 1,365, 46 decided to stop conducting regulated activities, for a variety of reasons, leaving 1,319 personal investment firms due to renew their PII cover. Evidence confirming they have cover in place has been sent to the FSA by 1,009 personal investment firms.
The FSA is contacting the remaining 24% to ascertain their position. A further 247 personal investment firms were due to renew their PII cover during December 2002 as the majority of their policies expired on 31 December. Of these, nine firms have already applied to cancel their permission, leaving 238 firms to renew. So far, 36% have confirmed cover is in place.
In its review, the FSA found that 21 insurers have provided PI cover. However, 87% of policies have been written through a small number of the main suppliers: Chubb and Lloyd's syndicates including Magian, and St Pauls.
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