Hiscox has refuted allegations that it is pulling out of providing professional indemnity cover to those who sell payment protection insurance (PPI).

But the insurer admitted it was reviewing whether its insureds met required standards.

Reports suggesting that Hiscox would abandon professional indemnity cover for those selling PPI cover appeared recently in the mortgage press.

Hiscox professions underwriting director Gary Head said: "This was misleading. We're keeping a close eye on this sector and back the FSA's own review it is undertaking.

"But I want to set the record straight and say that we won't stop providing cover for those who sell this insurance prudently."

Head said Hiscox was focusing on the secondary intermediaries it insured, such as those in the retail sector.

He added: "We want to make sure they have a good understanding of the product and we'll continue to look at each risk on an individual basis."