Why IFAs Matter: A Landscape Built on Independence
Born to provide clients with impartial, whole‑of‑market advice, and guidance not constrained by providers, Independent Financial Advice has been structured around suitability, ethics, and long‑term client outcomes. Over the last decade, as pension freedoms (introduced in 2015) reshaped retirement decisions, demand for nuanced, personalised advice surged, increasing both the value IFAs deliver and the responsibility they shoulder.
The rise in complexity; from pension withdrawals, investment strategy, and wealth transfer, has since made advisory conversations more technical and consequential. As a result, the insurance structures protecting IFAs have become not solely regulatory necessities, but foundations on which the profession could sustainably operate.
A Brief History of IFA Insurance in the UK
Coming into effect as compulsory in the 1980s for professionals who give advice or services, the Professional Indemnity (PI) insurance mandate emphasises the UK’s recognition that advice carries long‑tail liability, and consumer protection largely depends on firms having the resources to remediate errors.
The current modern era of IFA insurance has been shaped by several pivotal developments:
The Post‑2014 Regulatory Shift
Between 2014 and 2022, a wave of regulatory and structural changes reshaped advisory risk. Pension freedoms dramatically increased the complexity and liability associated with retirement advice, prompting insurers to tighten underwriting criteria and adjust premiums to match heightened exposure.
Rising Ombudsman Awards and Market Contraction
The increase in Financial Ombudsman Service (FOS) compensation limits in 2019 elevated the potential cost of misadvise, directly influencing PI pricing and insurer appetite. Some insurers exited the market, reducing capacity and increasing pressure on IFAs to demonstrate strong governance and record‑keeping.
The Present Phase: Cautious Stability
From 2022 onward, the PI market has since stabilised, supported by a maturing understanding of pension‑related risks and better risk management frameworks across advisory firms. The industry remains challenged, however is increasingly self‑aware, data‑led, and better equipped to articulate its risk posture.
The long arc of PI insurance shows a profession continually adjusting to protect both advisers and consumers in a world where financial decisions carry lifelong consequences.
How We Help: Omnyy’s Approach and Value Proposition
At Omnyy, our work with IFAs is rooted in understanding the advisory profession’s rhythms, obligations, and vulnerabilities, beyond the insurance product.
We offer:
- Sector‑specific underwriting narratives that reflect the true quality of a firm’s governance and suitability processes.
- Guidance shaped by real advisory risk, including defined benefit transfers, vulnerable client considerations, and evolving Consumer Duty expectations.
- A renewal philosophy built on stability, where we help reduce volatility by demonstrating the firm’s defensibility, documentation quality, and complaint handling structures.
- Constructive claims support, ensuring notifications are timely, narratives are coherent, and outcomes are as fair and pragmatic as possible.
For our underwriters, Professional Indemnity IFA cover goes beyond a safety net; it is the structural backbone that enables professional independence.
Our role goes beyond selling a policy; our underwriters elevate the risk conversation, helping firms articulate and manage their advisory exposure in a way that strengthens long‑term resilience.
Omnyy’s IFA product, backed by Liberty
Our partnership with Liberty is designed around complementary strengths:
- Omnyy’s proximity to the adviser community ensures submissions are contextualised, data‑rich, and reflective of a firm’s real-world controls.
- Liberty’s underwriting depth and long‑standing PI expertise ensure consistent, fair assessment of advisory risk, even in a market where capacity has tightened.
- A shared philosophy of responsible, sustainable protection, where clarity in wordings and pragmatism in claims handling remain central.
Together, we support IFAs with the discipline of a major insurer and the advocacy of a specialist intermediary.
How to Get In Touch
If you’re assessing your PI posture, planning for run‑off, or simply seeking a more resilient renewal narrative, we’re here to help offer perspective.
Email: sam.bolton@omnyy.com
