IFAs should expect big PI insurance rises

Independent financial advisors should prepare for rises of 50%, or even more, on their professional indemnity insurance, according to broker IFA Solutions. Jamie Newell, managing director of IFA Solutions, said that he has already seen significantly higher prices for policies that have gone for renewal in the last few weeks. “For a mid-sized independent financial advisor with an annual income of £400,000 or more, rates that had been around 1-1.2% of turnover previously are now coming in at 1.6 or 1.7%, or even 2% depending on the record, and I see no reason why this upward trend will not continue throughout 2012,” said Newell