The head of BDO Stoy
Hayward has said he expected firms to have testing negotiations with their
insurers when renewing professional indemnity cover.
His forecast comes after brokers said cover would rise by up to 15% and
insurance giant Hiscox said premiums were at unsustainably low levels.
Simon Michaels, senior partner at the firm, said: ‘There haven’t yet been a
higher incidence of claims for the insurers to say that there needs to be an
increase in premiums. The renewal conversations are going to be very
interesting.’ The firms regard talks with their insurers as highly sensitive and
have broadly remained tight-lipped about their arrangements.
Thornton spokesman said: ‘While the [PI insurance] market isn’t perfect, it
is competitive, so if premium rates increase more capacity will be attracted,
applying downward pressure.’
Gary Head, professions underwriting director at Hiscox, said: ‘When you look
at the uncertainty from the credit crunch, certainly there’s going to be
potential for more law suits brought against accountants.’
The Financial Reporting Council has issued guidance regarding the annual reporting of 1,200 large and smaller listed companies. The letter highlighted the key issues and improvements that can be made in the 2016 reporting season
Baldwins Accountancy Group has continued investment in the north-east and appointed David Fish as a director in its corporate finance team
UK M&A activity bounced back strongly in July and August, according to analysis by the deals practice at PwC.
Smith & Williamson has added Jim Clark and Philip Marsden, of Marsden Clark Corporate Finance Limited, to its corporate finance team.