Charles Ansdell, Inter Alliance
Absolutely. The smaller operators are going to find increases to PI cover in excess of 50% will put them under a lot of pressure, depending on what the company’s margins are. In some ways, a sole trader with an impeccable track record will be under less pressure than a small firm with one or two claims against it. But, in general, it is going to be hard for those not in a position to benefit from a mass discount.
Sally Laker, Mortgage Intelligence
I have heard rumours that PI insurance is now up to three times as expensive as it been in previous years. There is less choice among providers and I think that has partly allowed them to up the prices. The question is whether some brokers will think it is worth staying in the market, when they compare how much income they derive from it.
John Stewart, PMI IFA
We are a member of DBS and our latest premium has still gone up 65%. It hits profit margins hard and means you have to look at your options. IFAs operating by themselves are going to be very vulnerable. It looks as if you have got to go through a group just to get the cost benefits.
Nick Baxter, Mortgage promotions
Rather than focus on the negative, there is a lot that small brokers can do that not only gives their customers a better service but increases profit. As costs go up, rather than rely on just procuration fees from mortgages as they have traditionally, brokers should look to widen their service. If MPPI, life and buildings insurance is arranged, they will make a lot more than the increased PI costs.