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

Effective from June 2019

Hannah Godfrey
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The FCA has stated PI policies can no longer limit cover where the claimant is the FSCS or where the policyholder has become insolvent
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The FCA has stated PI policies can no longer limit cover where the claimant is the FSCS or where the policyholder has become insolvent

The Financial Conduct Authority (FCA) has stated PI policies can no longer limit cover where the claimant is the FSCS or where the policyholder has become insolvent, which risks increasing advisers' PI costs.

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...

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