FAMR: PII investigation could cut costs for smaller firms

FAMR recommended making the FSCS-levy a risk-based arrangement. FAMR said that it is important to establish the relationship between PII and FSCS claims.  It advises asking questions around whether prohibitively expensive PII cover is driving companies out of the market. Some insurers told FAMR that the potential total premiums in the market for PII and other personal investment firms might be significantly less than the sector's total annual redress liabilities. As a result, the industry may be less able to absorb the impact of liabilities, leading to higher numbers of firms faili...