threesixty is urging IFAs to review their PI insurance policies as it notes a large disparity between the price and quality of cover available over the last 12 months despite a soft market over the last year.
The IFA service provider says its premiums range from 1-1.5 per cent of turnover while many IFA firms are still paying 3 per cent or more of their turnover for PII while some are retaining a significant proportion for themselves.
threesixty believes IFAs arranging their PII via a support provider should ask for disclosure of commissions or marketing allowances.
Partner David Brattesani says: Our own IFA clients benefit from the modifications we have in place through a preferred facility arranged via NCG, but other IFAs we speak to still seem to be languishing in outmoded and relatively expensive PII arrangements.
“IFA support services providers should be adding to the value of their clients businesses, not detracting from it. This behaviour is simply not acceptable. We would urge IFAs generally to use the current soft market as an opportunity to seek genuine value from their PII with a proven insurer and in particular, to assess the real value of any support provider who appears to be profiting from their cover.