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Adviser sees 430% PI hike after 3 transfers

State of the market

PI premiums have shot up for advisers since the Financial Conduct Authority increased the Financial Ombudsman Scheme’s compensation limit from £150,000 to £350,000 last April.

Just last month FTAdviser reported advisers were seeing PI premium increases of up to 900 per cent while others warned the PI market could close off to more advisers due to the coronavirus crisis.

As at September 2019, just four in 10 advisers offered DB work, down from half the year before.

As insurers batten down the hatches against DB transfer risk, it is likely the DB transfer advice market could shrink further.

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