Bankhall has agreed terms for PI cover with broker NCG Professional Risks which it says will be the most competitive on the market.
Bankhall says in a quote for a four-RI IFA firm, the new cover cut premiums from £18,375 plus 5 per cent insurance premium tax last year to £15,250 plus 5 per cent IPT for the year from September.
The excess was down from £36,500 to £20,000 for investment-related business and £10,000 for non-investment-related activities such as mortgages and protection. The limit on cover rose from £1m to £1.2m.
In total, Bankhall market tested the new arrangement with three IFAs, a £100,000 turnover start-up, a £350,000 turnover firm with a pension bias and a £800,000 firm with an investment bias and says it found savings of between 25 and 40 per cent on cover.
The IFA service provider says its broker will determine premiums based on the qual-ity of business done by an IFA rather than on the quantity.
Bankhall group sales director Shaun Godfrey says: “Our compliance support is the best in the business and our PI pro-vider has recognised the fact. This has enabled us to negotiate big discounts via NCG.”
NCG joint managing director Neill Cotton says: “If we can be confident that Bankhall member firms are receiving best of breed compliance support, the risk of a claim from them is significantly reduced.”