New rules for PI firms 'could see 25% insurance cost rise'

In the past, some professional indemnity (PI) providers have sought to limit their liability by preventing the Financial Services Compensation Scheme (FSCS) from making a claim on the policy. This was either through a specific clause excluding the FSCS as a claimant, or relying on broad, general insolvency clauses that excluded claims relating to the insolvency of the firm or of third parties, regardless of any legal liability the firm may owe to a consumer. The FCA, which decided to change the rules after a consultation, expected the move would help to bring down the cost of the FSCS...