We recently reported on an experience of a FSP who found that his PI cover premium had nearly doubled at renewal. We speculated that this may be the result of an expected rise in claims from property syndication related determinations.
We contacted AON, who handles PI Cover for members of Moonstone. They reacted as follows to the article: After comprehensive market research, the Aon Executive Team elected to move the facility to a new product provider with effect from 1 June 2013. This decision was based on the fact that the current underwriters proposed a high premium and deductible increase, as well as a reduction in cover.
Arch Underwriting Managers at Lloyd’s (South Africa) (Pty) Ltd was appointed as the new PI Cover provider for Moonstone members through Aon South Africa (Pty) Ltd. Kindly note that rates increased up to 15% in certain instances. Should your premium increase be more than 15%, then it could be that:
a. your income figures have increased,
b. your business activities have changed or
c. there are claims pending against the policy
If you experienced a sharp increase, and/or would like us to obtain a quote for you, kindly contact Deon via email at email@example.com.
One of our readers provided the following interesting observation:
Reading about the increase in the PI cover, I am wondering whether the broker made the same mistake as me. The company that I use offers two cover Options, A and B. I always chose Option B, but by mistake this year ticked Option A. The quotation was almost double what I used to pay. I wrote to the company to query this, and they told me that I previously elected Option B. If I had ticked that, there would be almost no increase. I immediately changed back to option B.
Baie dankie, Louise in Pretoria. Click here for an example of the three options available to determine which one is suitable for your needs, and avoid forking out money unnecessarily.