FCA under fire for lack of mandatory PII policy wording

A professional indemnity insurance (PII) broker claimed mandatory policy wording enforced by the regulator would help lower costs for "good firms". The cost of other firms' failures, as expressed through the Financial Services Compensation Scheme (FSCS) levy, has been rising exponentially, O3 Insurance Solution's Jamie Newell said. Failure to produce rules on PII policy wording meant insurers were given the chance to pull out of covering liability for 'bad advice' because their policies allowed them to. The problem is the policies can be so opaque advisers find it hard to see what ...