The incentive, which went live in October is, according to Tenet distribution and development director Helen Turner, part of an ongoing plan to: “make excesses more closely related to risk profiles and reward positive conduct.”
Ms. Turner said that Tenet is the only network to offer such a saving and has confirmed that both investment and non-investment advisers will also benefit from improved excess terms.
“Working closely with our Guernsey-based subsidiary, Paragon Insurance, we can encourage specific behaviour and respond with complete flexibility to market demands,” she added.
“Advisers benefit from significant potential savings and, as a network, we are promoting and rewarding higher standards, in line with the primary aims of the RDR,” Ms. Turner concluded.
Robin Keyte, director of Taunton-based Keyte Financial Planners, said: “This looks like one of those offers that are aimed at making a good headline, but in fact is not as good an offer in practice as it appears at first.
The fact is that good IFAs will be unlucky if they have to claim an excess during their entire careers, so, in practical terms, having this deal is meaningless for most. Much more useful to the great majority of IFAs would be a reduction in the main premium, but, of course, this would be too expensive for PI companies to implement.”