Professional indemnity (PI) insurance premiums are set to soar, due to the "unregulated" status of some of the industry and the relative ease with which a brokerage can be established, said Tenet Group.
Insurers have reacted to a 40% rise in claim value, said Tenet, with market volatility and an increase in fraud, particularly in the mortgage sector, putting pressure on insurers. Claims against intermediaries are also becoming a major concern and the impact will inevitably put increasing financial pressure on advisers, it said. Keith Richards, Tenet's group distribution and development director, said mortgage advisers and small IFA firms continue to face more criticism than ever before. "Anyone taking out or renewing PI cover from this point forward should be aware that they could...
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