Tenet has implemented a series of measures to help keep professional indemnity costs down for members, group finance director Caroline Bradley has said.
Announcing that the network has kept its additional insurance at no extra cost compared to 2013/2014, Ms Bradley said: “At a time when the PI market is either refusing cover or increasing premiums by up to 20 per cent to advice firms, and is imposing ever-restrictive exclusions on cover, we consider our PI arrangements to be a significant differentiator.”
Reduced excesses will remain unchanged in forthcoming policies, with the introduction of a further category of a lower excess of £2,500 when members use the Tenet Paraplanning Service, which meets the group’s advice standards.
Tenet obtains its primary PI through its captive insurance company, Paragon Insurance Company, getting additional insurance protection from the Lloyds London market.
Ms Bradley said Tenet has successfully negotiated with its insurers for a reduced rate for trail and ongoing fee income.
Another measure brought in to help members includes appointing an in-house solicitor to help fight suspected unjustified claims.
Adviser view
Robin Sainty, chartered financial planner for Norwich-based Nurture Financial Planning, said: “PI is a major issue and the escalating cost for smaller IFAs is quite a big problem.”.
