Life Policies Direct has seen a significant reduction in its professional indemnity insurance with Sesame, following a huge and unexpected rise in premiums last year.
The firm, which is based in Telford, saw its PI premium reduced from £65,000 with a £25,000 excess in 2003 to £41,500 with £15,000 excess when it renewed it policy.
LPD managing director Jason King spoke to Money Mark-eting in June 2003 of his disappointment in Misys – now Sesame – after the protection broker saw its PI premium rocket by 2,000 per cent despite never having suffered from a complaint up to that point and being told not to expect much of an increase.
Sesame announced in May, after negotiations with PI provider Windsor Life, PI premium cuts of 20 per cent for new members, reduced premiums for 90 per cent of existing members of one-fifth, and for some a reduction of 30 per cent.
King says: “We were hoping that we would get a decent cut in premiums. Sesame has got membership a bit more organised this year and has had time to negotiate a better deal for its members. They have a better handle of what kind of business they are writing.”