View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
September 11, 2019

Rising cost of indemnity insurance could hit challengers

In the wake of a number of audit scandals, the cost of professional indemnity insurance (PII) for accountants and auditors has risen sharply in the UK. Citing one auditor who said insurance costs had doubled into the ‘tens of millions’, The Sunday Times reports this could create a significant hurdle for challenger firms that want to take on bigger clients.

Increased PII costs were inevitable in the wake of the malpractice scandals of recent years and the belated ‘get tough’ attitude of the Financial Reporting Council and its willingness to hand out multi-million-pound fines.

 “There’s no question the challengers face headwinds and the cost of insurance could be one of them,” the newspaper quoted Paul Boyle, former CEO of the FRC (2004-2009) as saying.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A roundup of the latest news and analysis, sent every Wednesday.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy


Thank you for subscribing to International Accounting Bulletin