Tenet advisers will have their professional indemnity insurance (PII) excess cut by 50% on claims on advice given after they obtain their Statement of Professional Standing (SPS).
The network hinted at the announcement when it said it would offer retiring advisers indefinite PII cover last month. It is also offering a similar discount for claims involving risk-rated funds, also through Tenet subsidiary Paragon Insurance.
"We are constantly investigating any areas in which we can reduce the financial risk exposure and the associated rising costs for advisers," said group distribution and development director Keith Richards.
"We are able to buck the trend in a hardening PII market, where exclusions and the increasing use of higher excesses are regarded as the norm.
"We see this further PII excess reduction as a dividend for achieving higher qualifications and feel this is an approach that the regulator could have usefully employed six years ago when the RDR was first being discussed and recommended as part of the consultation process."
The market is set to harden even further in the next year, Richards said, fuelled by "ambulance chasers" and a claims culture garnered by widespread reports of mis-selling and compensation.
"If not prepared, the financial exposure a company faces in the event of a claim can be catastrophic and has been impacting an increasing number of firms over the past couple of years," he said.
"We would therefore recommend that advisers pay particular attention to excesses and exclusions at renewal in addition to pricing."
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