Collegiate News

Collegiate to favour Institutes members

15 September 2005

Financial Adviser 15 Sept 2005

 

THE Institute of Financial Planning has negotiated a professional indemnity scheme for its members which takes into account the number of certified financial planners a company has.

 

The scheme has been launched by the Collegiate Group, which acts as a PI provider, underwriter and claims handler.

 

Tony Howe, chairman of Collegiate Insurance Brokers, said the scheme would calculate PI premiums for companies employing IFP members by looking at the losses through claims for the total number of companies insured under the scheme. The more CFP-qualified advisers a company has, the lower its premiums would be, taking into account its claims history.

 

Mr Howe said: “Even though the IFP members are IFAs, we are looking at them as a separate class for underwriting purposes. We are saying they are quality people, with far fewer claims, or the claims are of less magnitude or are less likely to succeed.”

 

He said there were no figures detailing IFP members’ claims experience compared with non-members by which to quantify the discounts, but the scheme was a “long-term promise that companies’ ratings will reflect the claims experience”.

 

Mark Andrews, managing director of Purplecircle Consulting and an IFP member, said: “Anything that helps drive down PI premiums and recognises that a company has taken the time and trouble to achieve higher standards has to be for the good. I am already covered through the broker NCG, but, if I thought for any reason it was not competitive, I could go elsewhere.”