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Life offices offer to pay PI premium for place on panels

Standard Life, Legal & General and other big product providers are understood to be offering to pay IFAs&#39 professional indemnity insurance in order to be on their multitie panels.

Money Marketing understands that some providers are putting together additional business services to offer IFAs as a sweetener to encourage them to take the provider on to their multi-tie proposition or panel. These additional services include PI insurance and technology, which can now be funded by a provider if it is deemed to be of tangible benefit to both the IFA and the provider.

Top-level commission can look unattractive to consumers, given that there will be cost comparisons on the menu, and so offering PI insurance or technology funding is an alternative way for providers to get close to IFAs.

IFAs which have been approached by providers are thought to include Simply Biz, Group 300 and Park Row. Falcon Group chief executive Allan Rosengren says the news does not surprise him as providers must be wondering how to secure distribution.

Simply Biz founder Ken Davy says: “There are lots of discussions going on at the moment between providers and IFAs in the dash for distribution but whether this is in the best long-term business interests of IFAs and their clients has yet to be determined.”

Legal & General managing director retail distribution Duncan Crocker says: “Clearly, various conversations are going on in relation to multi-ties at the moment but none of them is advanced enough to have actually undertaken to do anything.”

Standard Life says it would not negotiate panel membership on this basis.

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