The BFP, which has a membership of 81 self-licensed planners, previously had an insurance arrangement with Dual (which is backed by Lloyds).
But according to Insurance House account director Abraham Tavares, of the four major players in the Australian PI market Dual has taken “the biggest measures in terms of their book” in recent years.
“The arrangement with Dual went sour when they started to increase premiums quiet significantly,” said Mr Tavares.
“Their minimum premiums went from about $7,500 to $15,000, so micro planners who were paying a total of $7,500 were now paying anywhere between $15,000 and $18,500,” he said.
However, due to the BFP’s favourable premium-to-loss ratio over the past seven years, Insurance House been able to secure the group’s members an “alternative arrangement” directly with Lloyds, said Mr Tavares.
“It’s something that we probably wouldn’t be able to secure with a portfolio that was heading south,” he said.
Instead, Insurance House limits its clients to principal-owned and run financial planning firms.
“The reason for that is we believe [boutique practices have] a little bit more control of their staff and their procedures and training and development. As a result of that their claims are quite limited compared to the rest of the market,” said Mr Tavares.
