Further market reviews ‘counterproductive’
Speaking at the Association of Financial Advisers (AIFA) and Association of Mortgage Intermediaries (AMI) Business Leaders Lunch, Geoff Pointon, of the PYV group, said any further reviews into the market would increase advisers PI cover. He argued that with a rise in complaints about mortgage endowments, PI cover had substantially increased for advisers. He said: “The PI market has been on a horrific rollercoaster over the last 20 years. We don’t want any more reviews, not even quasi-reviews like those conducted in the endowments market. A number of underwriters and advisers have had to stop doing business as they can’t afford PI costs.”
He added the sector was now coming out of the bleak period that it had been through, but argued for the need of a greater, level playing field. He said: “This will ensure a fair market. There may be more competition but this will make rates lower for clients.” He suggested the PI market at the moment was ‘much softer’, with increased competition providing greater stability in the market.
Also speaking at the event, Sir Anthony Holland, of the Complaints Commission, moved to dispel myths surrounding his position at the Complaints Commission and the impact it is able to have on the regulator. “People would like us to look at a wide range of topics, but our systems and jurisdiction are limited. Regulation is here to stay, but what can be done is making it as user-friendly as possible. As soon as something goes wrong there is the call for more information, but that is not always the solution,” he argued.