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When determining the appropriate level of PII, why must non-regulated business be taken into account?

April 26, 2017account appropriate Business determining level non-regulated PII

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When determining the appropriate level of PII, why must non-regulated business be taken into account?

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Claims on a firm relating to non-regulated business can reduce the capital strength of a firm, and thus its ability to meet claims arising from its regulated business. This is why we require PII to cover all business. If you believe that your non-regulated business carries less risk, then you should discuss the matter with your broker. If there is less risk, it should follow that this is reflected in a lower premium.