4th January 2013

Nightmare or Sweet Dreams on PI Street

It feels as if no one can escape the words PII at the moment. Many of you have commented to me about the trials and tribulations surrounding PII and I wanted to provide some information and guidance for our members.

I’ve been speaking to Aon who have now prepared a guide to PII for Panacea Adviser which I hope you take the time to read as it has provided some clarity around some common questions.

But why is PII so topical at the moment?

It comes as no shock that in difficult economic times, claims against professionals shoot up and the IFA community tends to get caught in the conflict, this time round it’s because of failed funds, last time it was pension’s review next time, well who who knows! But there will be a next time that is for sure.

The FSA are still consulting on Arch Cru and that has become a dark cloud to anyone involved. I hear notifications to insurers are proving difficult and that exposure is not wanted by a new insurer. Once the decision is made on the s404 review, all may become simpler but in true FSA fashion this is dragging on!

Should the FSA take some responsibility for the Arch Cru and key data issues? I think many would say yes, but I will leave that for the community to ponder as it unravels further. It does however focus the mind onto how much we as community need to keep our own independence and due diligence over product choice.

Our adviser community can be an easy target for compensation from many sources these days and what insurance product supports adviser firms really is fundamental to their own protection. These policies can vary and if the policy doesn’t respond, firms won’t be let off the hook and additionally your businesses and personal assets may be at risk. The economy doesn’t seem to be turning upward so I stress vigilance in your PI decision making, do understand what you are paying for and what it will protect.

I offer thanks to Aon for compiling the attached guide, they have already helped a number of our members and it is because of this that I felt you should know a little more. Their contact details are below and if you do contact them at your renewal, please feedback any comments, good or bad, to me.

For more information on PI or to get a quote from Aon please call 0845 070 5674 or view http://www.rewritinginsurance.aon.co.uk/ifa.aspx Please reference “Panacea” when speaking to Aon.

Yours

Derek Bradley

Panacea Comment