Enable Mortgage and Insurance Network says it will not charge its network members extra for offering professional indemnity insurance cover as part of its intermediary package.
The network, owned by Skipton Financial Services subsidiary Direct Life & Pensions, will charge just a £500 excess on any claims made on the insurance scheme, significantly undercutting rivals.
It also says it will cover fees payable to the Financial Ombudsman, a package which it says makes it one of the most affordable deals to brokers in the marketplace. The network is using the lure of free PI and affordable excesses to attract mortgage and protection brokers trawling the marketplace for a principal in advance of regulation.
Enable managing director Michael Ward says: “You only have to look at recent reports that one of the biggest IFA networks in the country is offering its members a PI policy that carries excesses of £2,500 for mortgage business and £3,000 for what is currently non-regulated protection business to appreciate how good this is for our members.”
Sesame member PMI IFA director John Stewart says: “This seems too good to be true. I wonder what they are charging in terms of network fees. PI has to be paid for somehow and as we know, nothing in life is free.”