LCP and Royal London have called for a reform of the PI market so that PI insurers “feel comfortable enough to return to the market and provide cover at an appropriate price” in order to encourage advisers to continue operating.
Advisers have continuously warned that their PI costs had risen too high to make it feasible to operate in this market.
A Freedom of Information request published by the FCA in March revealed that 710 adviser firms altered their permissions in 2019.
Of these, 166 cancelled their authorisation, while 133 withdrew their permission and 411 added a limitation to their permission so they can no longer advise on DB transfers.
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