Context
On 13th May 2019 the European Commission published a Delegated Regulation 2019/1935, which made provision for an increase in the minimum required PII limits for insurance and reinsurance intermediaries in the EU. The increased requirement took effect from 12th June 2020 and the FCA have now amended the limits of Professional Indemnity Insurance (PII) in MIPRU 3.2.7 to reflect these changes.
Key points to note
For insurance intermediaries the minimum levels of PII cover are:
- for a single claim, €1,300,380; and
- in aggregate, the higher of:
- €1,924,560; and
- an amount equivalent to 10% of annual income (this amount being subject to a maximum of £30 million).
Next actions
Your firm is advised to check that its PII policy continues to meet these requirements and is proportionate to the business it undertakes; if necessary, you should contact your PII providers to amend the indemnity covers as required.