FCA review finds 'clear non-compliance' among PI insurance firms

'Significant concerns' on exclusions

Tom Ellis
clock • 2 min read

Some firms offering Professional Indemnity (PI) insurance do not comply with regulation rules, the Financial Conduct Authority (FCA) has concluded in a review of the market.

In an assessment of 200 general insurance intermediaries, the regulator said it found clear examples of "inadequate policy limits or exclusions which exclude all activity" among PI insurers, breaching its rules. Although the regulator found there is "sufficient breadth within the market to provide choice" for PI cover, it said a number of policies contained exclusion clauses that gave the FCA "significant concerns" the effect of the clauses could reduce the scope of cover that is required by MIPRU - the Prudential sourcebook for Mortgage and Home Finance Firms, and Insurance Intermediari...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Regulation

Duty of care: Moving the needle from compliance to strategy

Duty of care: Moving the needle from compliance to strategy

'Prioritising vulnerable customers should no longer be seen as an overhead'

Jonathan Barrett
clock 10 February 2026 • 4 min read
Verve flags adviser hesitance over compliance switching

Verve flags adviser hesitance over compliance switching

Launches guide

Jen Frost
clock 06 February 2026 • 2 min read
Failed financial advice firms tracker

Failed financial advice firms tracker

Firms that the FSCS has confirmed as failed since the start of 2023

Professional Adviser
clock 06 February 2026 • 1 min read