Tenet has has frozen its net professional indemnity insurance (PII) rates for the third consecutive year, for the period from 1 October 2016 to 30 September 2017.
Members are able spread the cost of PII over 45 weeks from October to assist with cash flow and a lower excess continues to apply to all non-investment business, the sales of risk targeted funds, chartered advisers and for members who use Tenet’s paraplanning service.
Caroline Bradley, Tenet group finance director, said: “The PII market continues to harden and many insurers are now introducing blanket bans on pension transfer business or introducing significantly high excesses, however Tenet has not undertaken any such steps and our excesses remain the same as the previous three years.
“Unfortunately, the government has increased insurance premium tax (IPT) with effect from 1 October 2016 which we have had to pass on to our members, but this is obviously beyond our control.”
Tenet obtains its primary PII through its own captive insurance company, Paragon Insurance Company Limited. It also supports its advisers to plan for their retirement with a run-off cover savings scheme, meaning most advisers would have fully ‘paid up’, assuming no increase in turnover, after a period of six years.