Should I approach more than one broker?
This is a very good question.
Your broker should be clear and transparent as to which insurers they can, and plan to approach for your renewal. Should you be involved with DBTs, your existing insurer may well be your best option. However, if your Insurer has withdrawn from the market or have added non-compliant restrictions in cover. A specialist broker will know how best to proceed and which markets to approach.
Many brokers have exclusive arrangements with insurers and will be unlikely to be able to approach other markets. If you find you are in this position, we suggest you look to approach one other ‘whole of market’ broker to approach all available insurers.
Please note that if an Insurer is approached by numerous brokers, there is a possibility that the underwriter may choose not to offer terms altogether.
What should I consider if I end up with more than one quotation?
We suggest the following:
- Check the policy for any additional endorsements and/or exclusions.
This is where you will find any non-standard restrictions. These can range from applying a sub-limit to the overall limit of indemnity to Pension Transfer restrictions (especially in respect of DBTs). It’s important you raise any concerns with your broker as soon as possible.
- Check the financial strength of the insurer.
Over the past five years, we have seen several unrated or poorly rated insurers enter the market offering very attractive rates, only to then withdraw from the market due to financial issues. If an option looks almost too good to be true, do your due diligence and look at the insurers financial ratings or ask your broker for details on S&P, Moody’s and AM Best ratings.
- Speak with a specialist PI Broker
A specialist PII broker should have broad market relationships and the knowledge required to offer the best service possible and more importantly, peace of mind. We have many years’ experience sourcing PII for IFAs and understand how the process works. Because of this we pride ourselves on making the renewal exercise as simple and efficient as possible.
About Daniel West Cert CII – Associate Director
Daniel has been with Apex Insurance Brokers for 5 years and specialises in the placement of IFA and Financial Institution Professional Indemnity Insurance (PI). As an independent broker, Apex can offer one of the most extensive choices of IFA insurers available, with specialist sector and product knowledge to offer their clients some of the best terms available in the market. Their extensive IFA insurance experience allows them to fully understand your business, advise how to best present your risk and what insurers are best suited to your firm.
