Tenet has written to advisers this week to confirm what is says is a number of positive outcomes regarding their professional Indemnity insurance (PII) renewal.
Tenet obtains its primary PII through its own captive insurance company, Paragon Insurance Company Limited. Tenet then obtains additional insurance protection from the Lloyds London market (the ‘Upper Layer Insurers’).
While average increases within the market as high as 20% for PI insurers, Tenet has managed to secure its upper layer insurance at no additional cost compared to 2013/14. This is related to a reduced ‘Long Term Loss Average’ (LTA) following work to improve amongst other things compliance standards, file quality and adviser qualifications.
In addition, reduced excesses remain unchanged in forthcoming policy 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 has also negotiated with its insurers to obtain a reduced rate for trail and ongoing fee income.
The firm also appointed a specialist in-house solicitor to complement the existing Customer Complaints team, to help ensure that Tenet is doing all it can where a claim arises to defend any unjustified claims, especially in relation to the substantial rise in the number of claims management companies who are serving to drive up the incidence of claims.
Group finance director, Caroline Bradley said: “At a time when the PI market is either refusing cover or increasing premiums by up to 20 % to advice firms and are also imposing ever restrictive exclusions on cover, we consider our PI arrangements to be a significant differentiator for our advisers.
“The reduction on our LTA in particular is a tremendous result as is recognition by the Upper Layer Insurers of the hard work both Tenet and our members, in partnership, have undertaken to improve our advice standards and claims history.”