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Independent Financial Advisors 2016 Professional indemnity insurance market investigation

As a specialist broker for the IFA sector, we are always looking for ways to help IFAs understand how they can better protect their businesses from PI claims, make more informed risk management investment decisions, and secure the most competitive insurance premiums. 

With this in mind and as many IFAs continue to find the insurance market challenging we thought it would be helpful to uncover the personal opinion of Underwriters involved in IFA PI Insurance: 

  • How they saw the market;
  • Share their insights about emerging claims trends
  • Identify which risk management measures encouraged them to provide the most competitive PI Insurance terms

To provide anonymity and give comfort to underwriters that they could be forthright and honest, we commissioned an independent marketing consultancy to manage the online survey.  A full report of the results is now available and key findings include: 

1.    Claims frequency remains a key concern for underwriters - the impact of the financial crisis is finally receding and increased risk controls within IFAs are seen as a positive factor in reducing claims. On the other hand, an increasingly litigious environment, pension freedoms and the potential of further thematic reviews by the FCA were reasons that many of the respondents expected that there will be an increase in notifications over the next 12 months.

2.    The need to be aware of the impact of dealing with certain activities and ‘insistent clients’ – PI premium rates are sensitive to business activities. Certain business activities are prime focal points for underwriters.  It is worth taking the time to understand how certain activities impact your premium, as these may actually prove unprofitable. 

3.    The value of strong risk management procedures remains high – Compliance structure, increased adviser oversight and file checking are high on the underwriter’s checklist. 

4.    New PI insurer entrants expected – The question is whether this new capacity will target clean, low risk firms or perhaps seek to attract firms undertaking higher risk activities, but that demonstrate strong risk management systems. 

5.    Growing trend for non-renewal – This has significant implications for IFA firms, especially those engaged in higher risk activities or with poor claims history and for those using single insurer market option brokers.  Through taking the time to build relationships and possibly meeting a potential new insurer, IFAs should be able to take comfort that they have credible options and will be in the position to take advantage of any new insurance market capacity.    

We would encourage you to download your free copy of the report by visiting www.proteanrisk.com or by emailing me. 

We hope you enjoy reading it and if you have any questions please do call or email and I will happily answer them. 

Yours 

Julian Brincat

Head of IFA Practice
Protean Investment Risks Limited 


About Protean Risk

Protean Investment Risks Limited is a specialist insurance broker advising firms and individuals in the investment industry, financial services and technology sectors. 

Protean Risk is fast emerging as one of the leading IFA PI brokers in the UK with in excess of 80% growth in premium, year on year, since 2012.  Unencumbered by the commitment to schemes and facilities, Protean Risk has access to one of the widest available choices of IFA PI insurers including Lloyd’s markets. 

Underpinning our values as a company is an overarching focus on customer service and satisfaction, borne out by extensive client testimonials and client retention rate. During a recent client survey over 90% of respondents rated our service as ‘good’ or ‘excellent’ and recommended us as ‘experts in their business sector’.

  

Author: LifeTalk Admin (Bella)
Posted: Wednesday, June 29, 2016 | 9:47:54 AM


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