The majority (83%) of financial advice business owners and wealth management chief executives do not have confidence in their ability to secure affordable PI insurance in the future, a survey of PIMFA members has found.
More than half (56%) of the 84 respondents reported their professional indemnity (PI) insurance contained significant restrictions, including historic advice related to defined benefit (DB) transfers, leaving firms without cover for advice given before the insurance policy began. In addition, the survey results disclosed the enormous rises in the cost of PII. A quarter (26%) of firms reported PII premiums had increased by more than 100% in the last five years. Moreover, some firms said they had not been able to secure cover because their premiums had increased so dramatically, forcing th...
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