The Service: The Deal
The basis of ‘the deal’ is a % of brokerage share between Practices and TEn; but for reasons of confidentiality and, as this is a public place, we cannot easily go into detail about it here.
There is, however, a formula that incorporates a host of subtle variations that take into account Practice differences, one from another.
It would be completely wrong for an established Broker to assume that the financial result of joining together with TEn would be like dealing through a wholesale broker for everything.
An idea such as this would appeal to nobody and, consequently, there would be very little point in us proposing it.
In the interests of clarity we should add:-
- no distinction is made between
new business and renewals - and as TEn brokerage improves,
then so does the Practices’
The costs
Technology costs are charged monthly ‘per seat’ on much the same basis and rate as any commercially available ASP service. Also, whilst the initial two or three days of installation and training on the system is chargeable, it is definitely not billed at a commercial rate.
On the other hand, TEn perceives the following burdens (and costs) will be lifted from its community of Brokers:-
- PI Insurance costs paid by TEn
- FSA compliance costs paid by TEn
- FSCS compensation fund calls... for TEn
- maintenance of solvency margins are for TEn
- client/insurer accounting performed by TEn
- broker technicians employed by TEn
- central IT functions performed by TEn
The benefits realised
To name but a few of them:-
- standardised compliant documentation
- access to wider markets and better rates
- an end to reliance on wholesale brokers
- more time to deal with new/existing clients
- and a future in the market
All of this merits an in-depth explanation, which TEn is more than happy to provide to bona fide enquiries. It is, in the end, all about profitability and survivability; which is where TEn believes it can make a compelling case.
