“There is still evidence of flexibility in FSA thinking,” he said. “At a seminar on PIMS, David Kenmir confirmed that the FSA will consider the granting of a waiver to those with adequate financial resources, even when the IFA firm has received a quote for PI insurance where the quote appears "unduly burdensome" ie because of the level of excess or because of the exclusions to the policy on which the underwriter is insisting. This follows lobbying by AIFA in response to members' concerns that underwriters were offering cover which exempted nearly all their business. You will have to demonstrate why the quote is unduly burdensome.
“The FSA response to CP169 - which forecasts yet more consultation next month on long term changes to regulation - is, as far as we know, the first FSA document to acknowledge that PI protects firms not consumers. This should at least help dialogue between regulator and PI market.
“The rule changes to the wording of PI policies have been confirmed. As we said in our response, the effect of this will be marginal but marginally positive. It is the next paper on the subject which will really outline the shape of things to come. In the meantime, may we stress that this is still our major priority.
“There is incidentally better news from the EU where we hear that the latest directive draft texts take account of the problems in the PI market and offer much more flexibility than earlier versions. This follows concerted pressure from us, the UK authorities and our European trade body, BIPAR.”
