PI provider imposes case limits for DB transfers

Danger-Stop-Warning-Sign-700x450.jpgAmTrust has become one of the latest professional indemnity insurers to impose case limits for defined benefit transfer advice, Money Marketing understands.

Additional premiums are required to increase the cap put on DB transfers, advisers tell Money Marketing.

All firms must now have some limit or other with regard to DB transfer business to ensure cover with AmTrust, Money Marketing understands, even if they illustrate competence through efforts like the Personal Finance Society’s DB transfer Gold Standard.

Are advisers getting a rough deal on PI cover?

Money Marketing first heard adviser complaints of difficulties securing policies with AmTrust last year, when the insurer confirmed it would “ask for additional information” due to the high-risk nature of DB transfers, but would continue to provide cover.

Exclusive: PI insurer Liberty pulls DB transfer cover for new business

Amtrust was previously part of a panel that insured Sesame, but Money Marketing reported in 2017 that it was rotated off the lineup at renewal.

At the time, the company said it “remains very committed to providing insurance for professional IFAs”.

AmTrust has not responded to a request for comment.

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Comments

There are 2 comments at the moment, we would love to hear your opinion too.

  1. This move surprises no one but lets hope serious ill health cases don’t miss out as the door closes on this category of business.

  2. The sad fact is that PII insurers do not give credit for any standards you may have or however much effort you may put into DB advice. This is why the cap on DB transfer advice is so ludicrous – there is no provision or flexibility to cost in business risk or regulatory intervention. CA and DB excesses are such that several thousands of pounds are added to DB transfer advice and should be paid for by those, and only those, who seek such advice.

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