Tenet has launched a new professional indemnity insurance proposition following concerns from the Financial Conduct Authority.
The proposition is aimed at Tenet’s directly authorised clients and means lower risk firms will get a discount.
The deal comes after in its consultation on reforming the Financial Services Compensation Scheme levy, the FCA looked at the professional indemnity market.
It acknowledged there were few providers in the market and some advice firms struggle to purchase appropriate cover.
We have been able to secure these improved terms due to the quality, breadth and reputation of the compliance services provided by the Tenet Group.Julian BrincatMike O’Brien, group regulatory director of Tenet, said: “We have put together a package that delivers what we believe is amongst the broadest level of cover available in the directly authorised market, with fairer terms and sensible excesses.
“At a time when a worrying number of advisers are struggling to obtain satisfactory cover - or indeed any cover at all due to insurers hiking excesses, expanding exclusions to unreasonable levels and increasing premiums exponentially - we have addressed the issue by negotiating preferential terms for TenetSelect customers.
“We feel it will be of particular interest to those advisers working in the pensions space, thanks to the cover it can provide having a positive implication on their capital adequacy requirements.”
Tenet will be working with specialist insurance brokers, Protean Risk, to deliver the proposition.
It has been agreed that firms buying more extensive services from TenetSelect will be considered “lower risk” by a market leading PII insurer and therefore attract a greater discount.
Julian Brincat, head of IFA practice at Protean Risk, said: “We have been able to secure these improved terms due to the quality, breadth and reputation of the compliance services provided by the Tenet Group.
“They reflect the lower risk that these firms will present to the PI insurers and as TenetSelect will be assisting its clients to complete the proposal documentation we have also been able to simplify and streamline the application underwriting process, which can be a very protracted process in normal circumstances.”
The FCA said it was considering introducing mandatory terms for PI insurance, such as requirements to have run off cover and restricted use of limitations.
damian.fantato@ft.com
