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Bulk liability historical cover deal set to go ahead this year

A deal to collectively insure distribution firms’ historical advice liabilities is set to go ahead this year.

Last month Money Marketing revealed that national advice firms and networks were in talks with global insurance broker Marsh UK to investigate the possibility of brokering a deal to incorporate several firms’ liabilities under a single arrangement.

A partnership of former Tenet group director Geoffrey Clarkson, Marsh UK and law firm Reynolds Porter Chamberlain are now going ahead with the plans.

Clarkson says: “We have spoken to enough advice firms to convince us that we can create this product.

“The next stage is to gather historical claims data from as many firms as possible. We then hope to have a product ready by May or June this year.”

Clarkson says that in addition to a bulk deal, the partnership has also been approached by firms who would like to secure similar liabilities cover on an individual basis. He says this may be possible, depending on firms’ claims history.

Clarkson says: “This will allow firms to take liabilities off their balance sheet for claims made over a set time ago, such as five years. 

“We hope it will encourage private equity firms to invest in the advice sector.”


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