UK - The UK's largest actuarial firms have hit out at the growing difficulty they face in getting professional indemnity cover.
Last week, reports highlighted concerns at the problems small actuarial firms faced because they could not find cost-effective cover.
But the UK’s biggest players – Watson Wyatt, Mercer and PricewaterhouseCoopers – all claim that they have also found that insurers are increasingly unwilling to provide cover for actuarial advice.
A Watson Wyatt spokesman said that some reinsurers have excluded many professionals involved in financial services, including actuaries, from the terms of their cover.
This, he said, had reduced cover available in the insurance market and premiums had increased “very substantially”.
“We have been obliged to pay the premiums asked, but have not been able to find as much cover in the market as we would normally carry,” he added.
Mercer Human Resource Consulting European partner Matthew Demwell agreed that getting professional indemnity has become a real problem for the industry and attributes it to the litigious nature of society.
He said: “Advice will go wrong, so the only way to protect yourself is by never giving advice. The insurance companies are seeing this as a soft option to get more money out of people.”
PwC partner Peter Tompkins added: “It is difficult to see a way out. People have got to have cover and insurers are averse about giving it.”
-The FSA has modified its rules for professional insurance cover for IFAs in a bid to increase capacity in the PI market.
Its specifications now allow insurers scope to offer more cost-effective cover.
The move was made to ease the effect of a 50% increase in premiums over the past year, according to the authority’s figures.
The British Medical Association (BMA) has warned chancellor Philip Hammond to reform the NHS pension scheme rules or doctors will reduce their working hours.
The lifetime allowance should be scrapped and replaced with a lower annual allowance, last week's Pensions Buzz respondents said.
Action for Children Pension Fund has outsourced its pensions administration to Trafalgar House.