Specialist brokers could get a better understanding of an adviser’s work, enabling a more rounded evaluation of cost and benefit to help position their risk, Nathan Sewell has said.
The chief executive of professional indemnity provider Protean Risk said the London-based firm had published a 10-page guide to help advisers manage their risk at a time when PI insurance was challenging many advisers’ propositions.
The publication, PI Insurance Guide for FCA Regulated Firms, answers the top 50 questions the provider has been regularly asked, ranging from FCA requirements to limit of liability.
“Insurers are determined to seek out the better risks and compete harder on those. It is very important to recognise this dynamic and work with a specialist broker that has broad market access and can provide options to leverage the opportunities that are available to them,” he said.
Adviser View
David Gibson, director of Londonderry-based Gibson Financial Planning, said: “PI insurance is challenging and a lot of hassle. Applications are up to 30 pages long, and shopping around does not help as each provider will have his own pages. So if you are happy with the service from your existing provider then you would not go to the trouble of going elsewhere for it.
“It is getting more expensive, and new criteria keeps cropping up, so if you do not have a good system in place it makes it more difficult to answer. A specialist provider can understand the work you do, and position your risk accordingly as all adviser firms are run differently.”
