A “fragmented and barely functioning” professional indemnity (PI) insurance market is “the biggest threat to adviser businesses” in 2020, Beaufort Group chairman Simon Goldthorpe has said.
Goldthorpe said there was a "clear fallout" from the move by insurers to step back from the PI market: "The PI insurance market has seen a huge contraction in the number of insurers operating within it. As a result, we now have a situation where firms that are already insured are struggling to change insurer, and the best an adviser business can often do is hope that its existing insurer will renew." In March, the Financial Ombudsman Service (FOS) compensation limit rose from £150,000 to £350,000. This prompted the Financial Conduct Authority to ask advice firms to double check their PI ...
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