Although the broker has not yet been named, it is believed to be the largest specialist professional indemnity insurance broker in the London market.
Paul Stanfield, chief executive of FEIFA, said the initiative is in response to the difficulty that advisers are now facing following the market withdrawal of a number of PI insurers, as reported in the January issue of IA.
A key feature of the new PI facility is the multi- insurer cover, which Stanfield says he has not come across elsewhere and is “an exclusive arrangement”. Several insurers participate and share a proportion of the risk.
“Spreading the risk with various insurers removes reliance on a single insurer’s appetite and provides some protection to IFA business owners when one insurer withdraws from the market,” he said.
To get the most comprehensive cover to ensure protection in the event of a claim, the facility uses its own specifically designed wording, formulated by the Lloyds broker, which is tailored to suit financial advisers’ requirements.
There is also no need to complete lengthy forms to obtain a quote, the option of spreading the cost by paying regular premiums, and competitive rates and excess levels is achieved with the benefit of collective bargaining power.
A dedicated in-house claims team will assist with all claims matters.
FEIFA flagged up this new professional indemnity facility at its recent Spring conference in London, having already announced in January another PI provider offering from AFL insurance brokers, which does not have the multi-insurance feature and is a bit more price competitive.
