FCA may intervene in PI market if it falters The FCA says that it may intervene in the professional indemnity insurance market for firms if insurers are unable to renew cover. A number of Financial Planners have complained that PII is increasingly difficult to obtain at affordable rates, particularly in relation to DB transfer business. The Personal Finance Society has been lobbying the FCA to take action although so far the regulator has declined to do so. However, in a hint that it may act, in an update to its PI policy this week the regulator said while it believed the market was operating correctly at present it would take action if the market started to fail. {loadposition hidden2} In a statement the FCA said: “We will continue to monitor the impact that Coronavirus has on all firms’ operational resilience, including insurers. “Where we see evidence that insurers’ ability to process renewals is being affected, we will consider taking action in line with our approach to supervision.” The watchdog said it recognised that the PII market is “evolving” and some firms were worried that the Coronavirus outbreak may affect their ability to renew PII “in a timely manner, impacting their operational resilience.” The FCA is keeping a close eye on the situation, it said, and assessing how insurers have been reviewing their approach to underwriting.