It was with interest that I read Keith Lewis's letter (Money
Marketing, November 6) and the responses from Glyn Morris of Magian and Fergus Chappel of Collegiate (Money Marketing, November 20).
My case is very similar to Keith's. Even though I say it myself, I am totally “clean” and have been in financial services for 44 years, with 25 of those as a sole trader IFA.
After three years with Magian, through Collegiate, they decided in March this year that they had “exhausted all of their capacity” and so would not invite renewal.
I admit to not having a great knowledge of general insurance but I understand that it was always recognised that a “holding company” had a moral obligation to invite renewal.
Collegiate could not arrange cover elsewhere and a full market survey (as required by the FSA) proved to be totally fruitless.
I applied to the FSA for a waiver. A couple of months later,
Collegiate came back to me with an offer from Magian Mutual of £5,622 with various excesses (last year's premium through Magian had been £2,562 and the year before £1,449). I told them
what to do with such a premium.
The FSA waiver application continued and eventually, while they were happy with my own resources test and all other matters, advised that “as the terms of the PI cover offered by Magian Mutual were not unduly burdensome”, it would be refused but suggested that I approach Magian Mutual again, particularly as CP193 was now in force.
I did this through Collegiate but was informed that “as they had offered fully compliant cover earlier, which I had declined to take up, they feel it is not in their best interest now to offer terms”.
I completed another full market survey which again proved to be totally fruitless and I am sure that readers will agree that the market has not improved one bit as a result of CP193. The FSA were informed and I have finally been granted a waiver.
The FSA have been very fair and sympathetic in my dealings with them but I find the attitude of Magian and Magian Mutual (can anyone tell the difference, except the obvious where IFAs are now carrying the risk) disgraceful.
Wetherby Insurance Services,Wetherby,West Yorkshire