Reg Brown, president of the Chartered Insurance Institute, has called for a closer working relationship between industry regulators and professional indemnity (PI) providers to develop effective cover for intermediaries.
GISC is proposing intermediaries arrange at least £1 million worth of PI cover, but rates in the market have been hardening - some premiums have increased by up to 500%.
Addressing a meeting of West Midlands Biba members, Brown said: "Regulators must understand that insurers will only remain interested while there is a reasonable prospect of underwriting profit. We are not a bottomless pit to be used and abused at the whim of the regulator."
Brown said that a genuine understanding of each other was lacking and urged regulators and PI providers to agree a framework for PI cover which was capable of lasting the ups and downs of the market.
A new PI facility has been launched by NCG Underwriting Agencies for brokers who are members of the Bankhall financial training body.
