The good, the bad and the ugly: FCA reviews insurance intermediaries’ professional indemnity insurance

In December 2016, the FCA published findings from its thematic review (TR16/9) of general insurance intermediaries’ (“GI intermediaries”) professional indemnity insurance (“PII”). The FCA has reviewed the PII of nearly 200 firms from the population of over 6,000 authorised GI intermediaries.

The purpose of the review was to see whether the firms complied with the requirements in the Prudential Sourcebook for Mortgage and Home Finance Firms, and Insurance Intermediaries (“MIPRU”) in the FCA Handbook and to assess more generally how the market is functioning. This review included Lloyd’s brokers, intermediaries acting as MGAs and insurers carrying out intermediation. We have written a summary of the findings and the implications of the FCA’s review.