But Scott Gallacher, a chartered financial planner at Rowley Turton, did not think the FCA's letter would change the way PI insurers operate at the moment.
He said: "Whilst any help from the FCA is clearly to be welcomed, I think it would be naive to assume that the PI insurers don’t understand how the increase to the Fos compensation limit will affect claims.
"PI insurers' sole business is assessing and insuring risk; consequently they cannot afford to get this wrong.
"Therefore, I wouldn’t expect their knowledge on historic claims history, and their view on potential future claims, to be swayed too much by an FCA letter."
The letter was also sent to a number of industry bodies, including the Personal Finance Society, the Personal Investment Management and Financial Advice Association and the Association of British Insurers, with the regulator stating it wanted the "widest possible audience" to be aware of the information.
Keith Richards, chief executive at the Personal Finance Society, said he hoped it would help mitigate some of the concerns PI insurers may have but thought it had come too late.
He said: "The FCA’s calming letter is welcome but unfortunately is reactive to an unintended consequence which was predictable and is likely to have wider implications for pension freedoms, the public and the advice profession more broadly.
"From my perspective, the horse has already bolted and the increased cost on regulated advice is likely to have wider implications in the long term for the public and conflicts with the honourable objectives of the Financial Advice Market Review."
Mr Richards said the PFS will continue discussions with the FCA and Treasury in the coming weeks, championing member experiences to highlight the "growing risk exposure of small firms resulting from high PI excesses and exclusions".
rachel.addison@ft.com
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