Sesame is setting out its stall in a bid to attract new members, offering professional indemnity premium cuts of 20 per cent to firms joining its network as well as promising existing members substantial reductions in their PI costs.
The mega-network says some members will see their PI premiums cut by up to 30 per cent, with over 90 per cent seeing premiums fall by a fifth.
Sesame believes the imp-roved PI offering will bring in new members ahead of the introduction of a European Union directive requiring all firms to have £1m cover by next January.
Maximum standard excesses will fall from £25,000 to £15,000, with standard excesses for companies with a turnover of under £100,000 falling to between £2,500 and £4,150.
Sesame says reductions will be smaller or non-existent for bigger firms, reflecting better terms negotiated for these firms last year. No firms will see premium increases unless there are extraordinary circumstances and all companies will see reductions in their excesses.
Sesame says it has been able to get the best network-wide terms in the market due to its scale and the fact that it has increased its own premium cost by 30 per cent. It also says a good claims record last year and appreciation of its control processes persuaded provider Windsor Life to offer discount terms.
Commercial director Martin Davis says: “PI is a major issue and this deal will help drive our aggressive expansion plans. IFAs will want to migrate to a business model where they can feel secure about getting a good PI deal.”
Jamieson Financial Management principal Bruce Jamieson says: “This will save me about £80 a month. This is the first bit of good news for some time.”