Firms were able to obtain cover for high limits of indemnity. This means that insurers have to comply with multiple regulatory requirements in different jurisdictions where individual regulators choose to ‘gold plate’ some of the The FCA review of PI cover found: • Availability of cover. The IDD raises the minimum requirements for PI for all intermediaries to 1.25 million Euros per claim per year and 1.85 million Euros per year in aggregate for all claims. Professional Indemnity Insurance The IDD requires that all intermediaries have in place professional indemnity insurance or a comparable guarantee with minimum levels of cover of €1,250,000 per claim per year, and €1,850,000 per year in aggregate for all claims. • Policy limits and excesses. Based only on our experience, we recommend the following as a minimum; Sole Trader Insure for at least four times fee income (£ 250,000 minimum) The FCA will adopt these new limits and firms need to ensure that their PI cover is adjusted accordingly. It should not include sub-limits, meaning that the cover falls below the minimum requirements and for example where financial advisers are IDD firms the minimum requirement is €1.85m (£1.57m). The IDD is a further step in ensuring an open and transparent insurance market. The IDR calls for a minimum level of cover for an organisation’s Professional Indemnity insurance. Minimum Level of Cover The table below sets out the minimum level of cover … Firms were able to obtain cover for claims arising from the range of their activities. This was €1m or €1.5m under the IMD. In a small number of cases firms did not have the minimum level of cover required by the Handbook. IDD is a minimum harmonisation directive which means that each member state is free to introduce more stringent provisions, provided that these are consistent with the Directive. The IDD requires that all intermediaries have in place professional indemnity insurance or a comparable guarantee. PI Insurance – The required minimum limit of indemnity on a firm’s PI cover for a single claim per year will be €1,300,380 anyone claim (€1,250,000 currently) – €1,924,560 aggregate one period of insurance*(€1,850,000 currently) *or 10% of annual income up to … of PI insurance cover they must carry, this is only a minimum requirement and cannot possibly take account of each firms individual risk. The minimum levels of cover are: • €1,250,000 applying per claim per year, and • €1,850,000 per year in aggregate for all claims Please note that these limits are in line with the current rule, and are minimum levels. The IDD sets a minimum professional indemnity insurance requirement for intermediaries of at least €1.25 million per claim or €1.85m in aggregate, unless such insurance or comparable guarantee is already provided by an insurance or other undertaking on whose behalf the intermediary is acting. They are The figures for PI cover and financial capacity have changed as follows: - the minimum amount of EUR 1 250 000 per claim is increased to EUR 1 300 380 per claim; - the minimum amount of EUR 1 850 000 for all claims/year is increased to EUR 1 924 560 for all claims/year; and The IDD requires that all intermediaries have in place professional indemnity insurance or a comparable guarantee with minimum levels of cover of €1,250,000 per claim per year, and €1,850,000 per year in aggregate for all claims. EIOPA developed the guidelines in the CP to cover the assessment of insurance-based investment products that incorporate a structure which makes it difficult for the customer to understand the risks involved as referred to in Art icle 30 (3 a i)) of IDD. The minimum levels for PII cover set out in the Commission Delegated Regulation 1125/20144 are €460,000 for each individual claim and €750,000 in aggregate per calendar year for all claims. Proposal for Guidelines under the IDD on Complex Insurance Based Investment Products.