Independent Financial Advisers have been finding the procurement of Professional Indemnity Insurance (PII) to be a difficult and expensive process in recent times.
The sector has experienced the perfect storm over the past six years, with a combination of increased claims frequency, significant instances of fraud and emerging and uncertain risks, for example with the introduction of Pension Freedoms, the annual renewal exercise has become a growing challenge for many firms.
Not unexpectedly, PII has now returned to the spotlight with calls to review the level of cover that policies are providing to firms. There is a great deal of variation in the coverage offered in the market as there are no standard minimum terms mandated by the Financial Conduct Authority (FCA), but this is to be reviewed in their consultation on the future of Financial Ser vices Compensation Scheme (FSCS) funding.
The focus for firms should be to carry the most appropriate level of coverage with the least restrictions. Whilst it is true to say that many of the PII challenges the industry is facing are largely outside the control of individual firms, there are significant benefits to preparing for renewal throughout the policy year.
This guide highlights some relatively straightforward steps that can be taken by you to improve the management of PII renewal process and ultimately achieve a better result, by using your time efficiently and minimising excesses and exclusions and hopefully premium:
1. IFA PII Requirement
2. Five building blocks to managing your IFA PII policy
3. The run up to renewal
4. IFA PII renewal checklist