CompaniesApr 26 2012

Chubb confirms retreat from adviser PI market

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ByDonia O’Loughlin

Insurance underwriter Chubb has confirmed to FTAdviser that it is withdrawing with immediate effect from the surveyors and valuers and IFA professional indemnity lines of business.

The firm says it is withdrawing with immediate effect after concluding the adviser market was no longer profitable.

Chubb declined to disclose how many advisers it currently provides cover for but says it would honour any agreements already in place.

A spokesperson for Chubb said: “Chubb can confirm that it is withdrawing with immediate effect from the Surveyors and Valuers and IFA Professional Indemnity lines of business offered through its Lloyd’s Syndicate, Chubb 1882.

“Chubb will honour any terms currently on offer to brokers on these lines of business. Chubb will no longer accept new business submissions nor will it renew existing business on these lines.”

In July last year, PI insurer Beazley pulled out of the IFA market due to increasing claims and QBE followed in December, saying the market was no longer profitable.

In November 2011, FTAdviser revealed that PI insurers were relying on exclusion clauses so that they do not have to pay out IFAs that are being litigated against by the Financial Services Compensation Scheme over advice given in relation to now defunct Keydata.