PI provider warns FOS limit hike will hit premiums

The FSA this week raised the limit to £150,000, up from £100,000. It said the impact to authorised firms covered by the FOS will be minimal as it expects only a low number of cases where the award exceeds the current limit. But PI Expert said it is likely that as awards at the top end of the market increase so too will those claims at the lower end, sending payouts, and premiums, soaring. Jenny Carter-Vaughan, managing director of PI Expert, said a number of insurers are no longer prepared to cover independent financial advisers, insurance brokers and mortgage advisers, and the new...