NACFB Mutual

In response to rising professional indemnity premiums and limited cover, the trade body developed the NACFB Mutual. Taking advantage of NACFB Members’ lower risk profile, the insurance-backed Mutual provides cheaper, more substantive cover exclusively for the Association’s Members.

The NACFB Mutual has been built by Members, for Members.

Why obtain PI cover through the NACFB Mutual?

NACFB Mutual, Competitive pricing

Competitive pricing

Members who have already accessed the NACFB Mutual scheme are achieving savings of up to 30% on previous policies. Such a significant reduction in costs highlights the competitive advantage that mutuality enables

NACFB Mutual, Enhanced coverage

Enhanced coverage

The Mutual’s cover protects against claims from third parties, including commercial lenders – excluding lender claw back claims. Most current policies contain a lenders’ liability exclusion clause which precludes such claims

NACFB Mutual, Reduced volatility

Reduced volatility

The NACFB Mutual is structured to ‘rides out’ the general cycles of the insurance market. It is sector-led, sector-driven, and sector managed – enabling greater agility and adaptability to changing market conditions

NACFB Mutual, Increased knowledge

Increased knowledge

Those taking out cover through the NACFB Mutual will share ownership of it and have a say in its management through the election of a board of directors. This ensures a greater sense of ownership and accountability

NACFB Mutual, Long term resilience

Longer-term resilience

The NACFB Mutual will be run much like the NACFB itself, with no shareholders demanding short-term profits. Through this Member-centric approach, the NACFB Mutual aims to build a strong foundation for the future – one of confidence and resilience

Product adaptability

Product adaptability

NACFB Mutual policyholders reserve the right to approach the board of directors and ask it to cover elements that fall outside of the initial terms. Such a strategic deployment enables the industry to isolate and address onerous claims quickly

Quote form

Request a PI quote with the NACFB Mutual

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    Policy features

    Policy Feature Standard PI Policy NACFB Mutual
    Policy protects against claims from lenders?*
    Designed by NACFB Members for NACFB Members?
    Pricing based upon sectoral risk profiling?
    Pooled risk based and collective oversight?
    Adaptable policy for claims outside of terms?
    Exclusively for NACFB Members?

    * Excluding debit back claims


    What sets the NACFB Mutual apart is its ability to reduce volatility whilst enabling resilience amidst the fluctuations of the insurance market. Its structure is rooted in sector-specific management, allowing for heightened agility and adaptability. Policyholders share ownership and possess a voice in its management through the election of a board of directors.

    Long-term resilience is a core principle of the NACFB Mutual, mirroring the NACFB’s ethos by prioritising sustainable outcomes over short-term profits. Notably, policyholders can leverage the NACFB Mutual’s adaptability by requesting coverage for elements beyond the initial terms. This strategic application helps the industry promptly address challenging claims, preventing broader market repercussions.


    How did the Mutual concept develop?

    At its heart, insurance is a very mutual concept: a group of individuals or entities with a shared opportunity or problem joining together to provide an effective and cost-efficient solution. That was how the sector first become established, and little more than 20 years ago, the majority of the UK insurance sector was still mutual.
    Today, mutuals account for around ten per cent of premium income in the UK insurance industry, though this itself marks a recovery from the period immediately before the financial crisis in 2008. During that 20-year period we have seen mergers that have reduced the number of active mutual insurers below a hundred, with significant barriers to entry preventing the development of new traditional mutuals.
    The solution to that has been the widening development of the discretionary and hybrid discretionary mutuals.

    Who manages the NACFB Mutual?

    The NACFB Mutual is managed by Tower Insurance Brokers Limited who are based in Lytham St Annes. Tower are an established Insurance and Risk Management Consultancy offering a variety of Broker services to businesses and individuals across the UK and beyond.

    How is a Mutual different from an Insurance Company?

    A mutual is an organisation whose members pool risks of a similar nature to achieve a long-term, stable alternative to insurance. Mutuality is a growing sector within the insurance world and is particularly appealing to industries that have suffered in the past from the recurring cyclical nature of the standard insurance market. Mutuals; being run by the members; tend to understand the exposures of their members better than general insurers.

    A vital component of a mutual is that claims are paid at the discretion of the Board. That means that the payment of claims is not contractually guaranteed, but within a mutual organisation, owned by its members a claimant can expect a sympathetic response. Indeed, as the underwriting and claims handling process is not as narrowly defined as to whether a claim meets the contractual obligations, fairness may play a greater part.

    In assessing any claim, the mutual being owned by its customers presents no conflict of interest, as the organisation’s sole purpose is to serve its members.
    As well as being less costly to run than a shareholder-owned insurance company, a prominent feature of many mutuals is that the contributions paid by members create a pool of member funds which exceeds the claims and expenses. This surplus may, at the discretion of the Board and under the direction of the members, be used to reduce or rebate contributions, invest in new products and services, or to support a short-term adverse claims experience.

    Is the NACFB Mutual an insurance company?

    NO. The NACFB Mutual is a Hybrid Discretionary Mutual that combines pooled mutual protection with insurance to efficiently protect NACFB members for their Professional Indemnity problems.

    What are the key differences between a mutual and an insurance company?

    • A mutual is owned by its members, whereas an insurance company is owned by its shareholders, which means –
      1. members choose the board of directors, and they get a say in the management of the mutual.
      2. the mutual is run by its members for its members, not for the benefit of shareholders.
      3. Members get to share in the trading surplus of the mutual
    • A mutual deals directly with its members rather than via brokers, thus avoiding broker commissions.
    • Mutuals have certain tax advantages over conventional insurance companies that can benefit its members.

    Is the NACFB Mutual an insurance broker?

    NO. The NACFB Mutual is a Hybrid Discretionary Mutual that combines pooled mutual protection with insurance to efficiently protect NACFB members for their Professional Indemnity problems.

    What are the key differences between a mutual and an insurance broker?

    1. Brokers act in the interests of their shareholders, mutuals exist solely for the benefit of their members.
    2. Brokers are remunerated by commission and fees, which may be specific to an individual client, but can also earn other non-disclosed remunerations from the insurers with whom they place business. All the financial arrangements whereby the mutual is remunerated are transparent.
    3. Brokers have less interest in risk management and claims experience as oftentimes their remuneration increases as premiums go up. Mutuals are committed to bringing down the total cost of risk.

    Can the NACFB Mutual cover regulated and non-regulated activities?

    YES. Whether the business conducted by a member or prospective member of the NACFB Mutual is regulated, non-regulated, or a combination of both is of no significance. We treat all members equally and make no service distinction between regulated or non-regulated activities. The NACFB Mutual is itself regulated by the FCA as an Appointed Representative of the Mutual Managers.

    Does the NACFB Mutual determine the price of cover?

    YES. Subject to the constraints usual in any market, and the need to buy insurance to protect the mutual and its members, the NACFB mutual is free to set its prices according to the guiding principle of what is best for the wider membership.

    Is the NACFB Mutual regulated?

    YES. The NACFB Mutual is regulated by the FCA as an Appointed Representative of the Mutual Managers

    Can the NACFB Mutual cover all finance and credit broking activities?

    YES. but there are some activities that the NACFB mutual chooses not to cover as standard. The NACFB mutual, in consideration of its wider duty to act in the best interests of the entire membership, exercises due caution when underwriting certain residential finance and credit activities. Details of these are found on our proposal form. We also choose not to cover complex Structured Asset Finance arrangements.

    Can we talk directly with the underwriters if we are in doubt?

    YES. Our Head of Underwriting regularly calls to discuss areas of concern with  members or prospects including, but not limited to-

    1. Whether certain activities are or can be covered.
    2. How the mutual model works.

    The Mutual's cover is not guaranteed as the first £50,000 of every claim is "discretionary", is this a concern?

    NO. The NACFB Mutual is a Hybrid Discretionary mutual that blends discretionary cover with conventional insurance for the best interests of its members. The discretionary element of the cover is determined by the Cover Wording, but viewed through the filter of what is best for the member not the shareholders of the insurance broker, MGA, or insurance company. Not only does this mean that all claims that fall within the strict terms of the Cover Wording will be viewed favorably, but also those that are technically excluded can be considered for settlement if this were what the wider membership would deem fair under the circumstances.


    NACFB Mutual Board Directors

    Norman Chambers, NACFB managing director, has 30+ years in banking, including roles at NatWest and RBS. Since 2014, he's driven NACFB's growth.

    Norman Chambers
    NACFB Managing Director Norman Chambers

    Adrian Coles has over 30 years of experience in the commercial mortgage market. He joined the NACFB in 1993, became a director in 2009, and currently serves as Interim Chair.

    Adrian Coles
    NACFB Interim Chair Adrian Coles

    Paul Goodman, former Chair of the NACFB, is a seasoned finance professional with over 30 years of experience. He joined the NACFB 12 years ago and has played a pivotal role in its growth and success.

    Paul Goodman
    Former NACFB Chair Paul Goodman

    Russell, a decorated former British Army officer, is a training and security consultant and NACFB Mutual board director.

    Russ Lewis
    Former NACFB Board Director Russell Lewis

    David, a Chartered Accountant and trusted advisor to SME businesses, previously served as a non-executive director for the NACFB.

    David Newborough
    Chartered Accountant David Newborough

    NACFB Mutual Managers

    Tim is responsible for ensuring that Tower Insurance Brokers (the Mutual’s Managers) delivers the Board's vision ethically with a positive, professional work culture.

    Tim Forshaw
    Managing Director of Tower Insurance Brokers Tim Forshaw

    Martin is an FCII qualified Chartered Insurer with 45 years of experience in non-life and pensions insurance.

    Martin Richards
    Director of Tower Insurance Brokers Martin Richards

    Aaron is a Chartered Company Secretary with over 16 years of experience in Regulation, Compliance Supervision, and Mentoring.

    Head of Compliance (Tower) and Company Secretary Aaron Greaves

    NACFB Mutual is a member of the Association of Financial Mutuals

    Contact Us

    Claims & Complaints –

    NACFB Mutual Ltd (NACFB Mutual) is an appointed representative of Tower Insurance Brokers Ltd who are authorised and regulated by the Financial Conduct Authority.

    NACFB Mutual Ltd (NACFB Mutual) registered address – 33 Eastcheap, London, EC3M 1DT United Kingdom