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PI insurer enters adviser market with price pledge

A new professional indemnity insurer has entered the financial adviser market with claims it can halt the trend of escalating premiums.

In recent months, advisers have reported increases in PI insurance premiums of between 40 and 50 per cent.

Hoyl Underwriting Management says it will offer discounted premiums to firms which can prove they have better compliance models and better-qualified staff, such as those with chartered status. HUM, part of adviser business Hoyl Group, will offer cover underwritten by Elite Insurance exclusively to financial advisers and mortgage brokers. Elite currently provides PI cover to solicitors only.

The firm plans to monitor firms’ business activity on a monthly rather than annual basis. HUM director Paul Barnes says: “This will allow us to offer cheaper premiums because we can monitor firms’ business activity far more closely.

“We want to get under the skin of firms and be able to step in straight away if they move into new business areas to ensure we are comfortable with what they are doing. This will end the retrospective approach of PI insurance, which has led to increasing restrictions and costs.”

Barnes believes between 20 and 25 per cent of the adviser market would be suitable for the offering and the insurer aims initially to take on around 25 firms a month. He says the policy is “continuous” and premiums will change on a monthly basis only under exceptional circumstances. HUM will review premiums annually.

The policy can be cancelled at 60 days’ notice by HUM or 30 days’ notice by the firm.

Yellowtail Financial Planning managing director Dennis Hall says: “While it is welcome to see a new insurer entering the market, you do have to work harder for the cover and I would be concerned that premiums could go up on a monthly basis.”

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Comments

There are 5 comments at the moment, we would love to hear your opinion too.

  1. If anyone would like to find out more about our new product, please contact me directly on 0844 384 3101 e-mail pi@hoyl.co.uk or visit our website http://www.humltd.co.uk
    Kind regards
    Glynn Fleming
    Operations Manager
    Hoyl Underwriting Management

  2. In response to Dennis’s comment regarding the premium increasing, which is no surprise given the current market. The policy we offer is continuous, but the premium is reviewed annually so your initial monthly premium will be fixed for 12 months and given our unique approach in this market place we are working with all our Insured parties, throughout the life of their policy, in an effort to reduce their exposure to risk and this will be reflected in the premium offered. The product we are offering will reward those who manage the exposure their business faces and if they embrace risk management measures the premium will reduce, rather than the current market practice of standard increases for all.

  3. Elite are an unrated insurance company !!!

  4. Good news look forward to calling you in a months time !!!

  5. Strange dichotomy if you ask me… Surely firms with “better compliance models and better-qulaified staff” would not choose to use an unrated insurer who may not be there to pay out the claims when the time comes?! False economy

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