The Institute of Financial Planning is trying to get a better deal for its members on professional indemnity insurance.
Chief executive Nick Cann believes his members, who are all certified financial planners, are lower-risk than other IFA businesses as they have good audit trails, are mainly fee-based, which is broadly perceived as being a more transparent way to operate, and, as members of the IFP, are subject to an annual renewal of their CFP licence.
He is meeting PI brokers and underwriters in an attempt to get PI insurance for members at reasonable rates. He says if he can get them to acknowledge that IFP members are lower risk, he is hopeful they can get cover without significant increases.
Over the next couple of years, if IFP members demonstrate that they are lower-risk, he hopes to negotiate a reduction in premiums.
Cann says: “A good start would not necessarily be a big price reduction but if I could ensure IFP members were allocated cover that did not include a big increase in premiums, I would be pleased. Then if we could build up a track record we could start to look at some form of reduction.”
Collegiate marketing and project development director Fergus Chappel says: “We have seen Nick about this and are trying to see if we can do something for his members.”