How to give yourself the best chance of a good PII deal

Understanding their individual attitude, capacity and tolerance to risk, and presenting specific recommendations to these, significantly reduces surprises for all. 

Avoiding a claim is better than having to defend one. However, should a claim arrive, you should be in a better position to defend the recommendation.  

Have a standardised approach and utilise technology

A standard, process driven, approach can help reduce human error.

Using technology can be helpful, especially with repetitive tasks. For example, software solution Money Alive is a good example of providing an engaging repeatable explanation of defined benefit risks, providing a consistent approach for advisers and clients.

Learn from mistakes

A well-handled complaint can lead to a happy client and improvements to a business's procedures, making them more robust for the future.

File reviews can provide similar results in a less painful way. Using client file reviews as a positive way to identify training needs for individuals or for process improvements provides more value than considering them for purely individual suitability assessments.

What do your files tell you about the knowledge of your advisers, your processes or your service proposition?

Looking for opportunities to reduce risk and business development can have significant impacts on a business's profitability and risk exposure.

Consider your operational resilience

Operational resilience is the ability to prevent, respond to, recover from and learn from disruption.

The disruption caused by Covid-19 has shown why it is critical for businesses to understand the breadth of potential influences to service delivery. Both the regulator and insurers look at operational and financial resilience as a key metric.

Small premium saving has little value if cover is then withdrawn in future years.

A business with little resilience headroom has a far greater likelihood of having to change from its standard approach if put under pressure. Pressure often leads to risks. You should understand how the business would react to different 'what if' scenarios.

Be open about any risks

All businesses have risks, use your PII application as an opportunity to disclose and explain any risks in your business and why these should not be a concern to the insurer. What are you are doing to manage, mitigate or remove them?

It is also prudent to consider which of your products and services could be a cause for concern in the future, even if they are not today.

Prepare for the new consumer duty

The FCA’s consumer duty proposals represent a significant shift in regulatory expectations on how businesses think and act to ensure good outcomes for their clients. It will mean reviewing, evidencing and monitoring how clients’ interests are at the heart of your business.