He added: “The problem with the legacy market and the gripes that we hear is that everyone gets tarnished with the same brush. And invariably, it's a few bad actors within that pool of clients that create pain for everyone else.
“So we're looking to cast our net wide, and we're turning our attention to the really good firms that can evidence that and the very good versus excellent firms. We've hardwired into erasing some discounting measures in there as well. So that's the encouragement.”
It was met with praise from the industry with Andy Kirby, chief executive of Money Alive, who said that “something needed to be done”.
“We've seen firms obviously having to pull out of the market due to PI excesses which have been going up.”
He added: “Obviously nobody wants to buy insurance. It's one of those situations where nobody thinks they need it until they do need it. And then when you do need it you are glad that got it, but you want to make sure it is going to cover you for all the things that you want to be covered for.
“It is only when it goes wrong that you realise just how important it is.”
amy.austin@ft.com
