Four in five NACFB Members now covered by the trade body’s in-house Professional Indemnity (PI) cover
The NACFB Mutual, now in its third year of trading, has confirmed it will deliver its first round of loyalty-based fee reductions to qualifying Members upon renewal. This benefit, built into the very design of the Mutual, ensures that surpluses are returned directly to Members.
Qualifying Members will see a 15% loyalty rebate applied at their next renewal, reflecting contributions made during the Mutual’s first trading cycle (the initial period of cover for those who joined at launch). To be eligible, brokers must have held cover from the outset of that cycle, have renewed continuously since, and have made no claims or notified any circumstances that could give rise to a claim. The rebate will be netted off at renewal rather than paid separately, ensuring the benefit is felt immediately in reduced renewal costs.
This marks the first phase of a core commitment built into the Mutual from the outset: that any trading surpluses should be shared fairly among its Members. The first phase of that benefit is now being realised. This approach ensures that the advantages of mutuality – fairness, transparency, and Member ownership – are felt directly by those who supported the Mutual from the outset and who continue to renew their cover.
Alongside this development, the underlying insurer backing the Mutual has recently been upgraded to an A-rated provider, First Underwriting Limited, giving Members added comfort and long-term peace of mind.
Launched to tackle the escalating cost of PI insurance, the NACFB Mutual has consistently delivered meaningful savings. Members have seen up to 30% reductions on first-year renewal contributions compared with other providers. Today, four in five NACFB Members are now covered by the Mutual – a testament to its effectiveness and growing reputation across the broker community.
Unlike conventional insurers, the Mutual also has the flexibility to respond to circumstances outside standard policy wordings, reflecting the day-to-day realities faced by both property-focused and business and asset finance brokers.
Chair of the NACFB Mutual, Adrian Coles, commented: “The Mutual was founded on the principle that Members should share directly in its success. This first round of loyalty-based reductions marks a significant step in delivering on that promise. Coupled with the security of an A-rated insurance backer, the Mutual continues to set the benchmark for fair, reliable, and Member-focused cover.”
Martin Richards, a director at Tower Insurance Brokers, the team that manages the NACFB Mutual, said: “The Mutual was built on fairness and transparency. Rebates are linked to Members’ original contributions and reviewed annually by the board, so while not guaranteed each year, they ensure that whenever conditions allow, Members directly share in the success of the Mutual.”
The NACFB Mutual remains open to all qualifying broker firms within the Association. Member firms with upcoming PI renewals are encouraged to request a quote online here today.
The benefits of the NACFB Mutual
By design, the NACFB Mutual offers advantages that conventional PI insurance cannot always match, here are just eight ways the cover can support your brokerage:
1. Surpluses redistribution – Where trading performance allows, unclaimed contributions are returned to Members through loyalty-based reductions, ensuring success is shared fairly.
2. Discretionary support – The NACFB Mutual board has flexibility to consider claims outside standard wordings, focusing on finding solutions rather than exclusions.
3. Adaptable cover – The Mutual can evolve its terms and approach in response to changing market conditions and broker needs.
4. Member voice and governance – Decisions are shaped by the board on behalf of Members, ensuring their interests remain central.
5. Collective strength – Pooling risk across the NACFB community creates stability, resilience, and greater negotiating power.
6. Market influence – At its launch, the NACFB Mutual reintroduced much-needed competition to a limited PI insurance market, helping keep costs in check more widely and over the longer term.
7. Long-term value – Alongside immediate savings, Members may be able to share in future surpluses, reinforcing the principle of it being by NACFB Members, for NACFB Members.
8. Fairness and transparency – Contributions are priced equitably, with rebates based on actual participation.