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PYV hits out at Collegiate direct PI deal

PYV has attacked Collegiate’s direct adviser PI product as inappropriate for the small firms it is targeting.

Chief executive Neil Pointon says the service, which launches this week, is unsuitable for small firms which he says would be better off going to a broker for PI cover.

He also says the claim department may not offer a fully independent service as it is linked to the direct proposition.

Collegiate managing director Tony Howe says in many cases it does not make sense for a small firm with no complications to use a broker as fees will be disproportionately expensive.

He says worries over the independence of the claim department are unfounded as claim handling is separate from underwriting and administered to industry standards.

Pointon says: “I urge advisers against using this direct offering and to go through a broker as advisers know more than most that a brokered solution works in the client’s best interest.”

Howe says: “I can understand PYV is worried about losing market share but you have to question the motivation and justification of these comments. Collegiate Direct offers a simple, innovative service to a specific market.”

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