IFA warning as PI premiums set for 50% hike

Scott Sinclair
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IFAs are being warned to brace themselves for a 50% hike in their Professional Indemnity (PI) insurance premiums next year as the market downturn shows little sign of abating.

The warning comes from PI underwriting giant Collegiate, which says the increase will reflect the "inevitable" rise in the number of claims against financial advisers during economic slumps. London-based Collegiate, which has both underwriting and claims arms and says it insures more than 15% of the UK IFA population, says the number of claims it processes has doubled in the last 18 months. It also criticised some PI insurers, as well as trade associations and compliance providers, for being unclear about which exclusions some policies feature and "emphasising price above coverage". ...

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