TENET COMBATS FINANCIAL BURDEN OF PII
18 September 2014
At a time when the professional Indemnity insurance (PII) market is becoming extremely tough, making it difficult for many to obtain competitive terms, Tenet is working hard to combat the financial burden of PI for its members and has written to them this week to confirm a number of positive outcomes regarding their PII renewal.
Tenet is unique amongst its peers in obtaining 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’), providing both the group and its members with the security of a large level of cover from a range of insurers. With average increases within the market as high as 20% for PI insurers, Tenet is delighted to confirm that it 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.
Further positive outcomes include:
- 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.
- Successfully negotiated with its insurers to obtain a reduced rate for trail and ongoing fee income.
- 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 comments:
"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.”
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