PYV has opened the professional indemnity insurance market following a deal with Chubb Insurance, just as IFAs need extra capacity.
PYV already acts as brokers to around 25% of the directly regulated intermediary sector but the deal has been signed just as other insurers are returning to the market, says PYV.
New of fresh PI capacity couldn't come at a better time for financial intermediaries as it is at this time of year adviser firms have to renew their current arrangements and if necessary find new, better premium deals to ensure they sufficient professional indemnity insurance for regulatory rules.
The Financial Services Authority’s approach to tackling the PI problem is perhaps why many insurers are now returning, says Neil Pointon, operations director of IFA PII at PYV, because the UK regulator has been pro-active in its attempts to solve the crisis and prevent the need for PI in Europe to warn other regulators and maintain capacity levels.
Moreover, the shift towards greater capital adequacy requirements has also help alleviate pressure.
Pointon says premiums and terms should stabilize for intermediaries while some may see considerable improvement.
That said, new requirements under the Insurance Mediation Directive mean some advisers may need to buy additional coverage, which in turn could continue to put pressure on premiums.
“We are delighted with the new deal with Chubb, and we see it having a widespread effect across the market, some IFAs who are currently insured elsewhere, could see their premiums fall by as much as 25% if they obtain a quote from our new facilities.”
To request a quote for PYV’s professional indemnity insurance telephone 020 7626 6789 or email [email protected]IFAonlin
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