Brokers Ireland recently announced, following a review by EIOPA of the Harmonised Index of Consumer Prices (HICP) and a December 2023 European Commission Regulation amendment, that the minimum rate of Professional Indemnity Insurance (PII) that insurance intermediaries must have in place in the EU will increase on 20th October 2024.
The limits will increase as follows:
- The base PII amount applying to each claim is to increase to €1,564,610 (up from €1,300,380 – an increase of €264,230)
- The base aggregate PII amount per year is to increase to €2,315,610 (up from €1,924,560 – an increase of €391,050).
The HCIP rose by 20.32% between 1st January 2018 and 31st December 2022.
The FCA has not yet published anything to indicate that the current UK limits set out in MIPRU 3.2.7 R (which are in line with the current EU requirements) will increase.