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< Back to Latest News Studies Newsletter: Tax Fee Protection Insurance Update (Issue 4)

Talking Tax: April 2022

Author: Mike Scales, TFPI Director

When an accountancy practice appoints Zeal TFPI as their consultants, they get a variety of services relating to the industry as a whole as well as practice specific information. The principal reason is to ensure that the client gets up-to-date information that is relevant to their practice. . . to save time, money and effort.

Inevitably, when a practice has a TFPI scheme, there will be several insurers approaching the practice directly in order to ply their wares. Each insurer will always present their product as “the best”, which is normal albeit sometimes very misguided. The process can be laborious and time consuming, and very much depends on the practice’s appointed decision maker’s technical ability (or enthusiasm) to navigate through the presentations … and sometimes there is a failure to recognise technical and service differences between each insurer. All too often the incumbent just reads the headlines, which insurers make sure looks glamourous or top-shelf (it’s their job to do so), and the practice then makes a decision as to which insurer to use based on the glitter instead of the fact.

This is where we come in.

At Zeal TFPI, we constantly review the whole market, especially the main dedicated TFPI insurers. We put the findings in a line for line comparison data sheet, which instantly highlights the key differences between the cover or service. This is done every month, so that when a client requires a comparison in order to make a decision it is instantly available to accompany the individual practice feedback and whole market reports we provide.

We collect data from not only the insurers, but also (importantly) from end-user clients … these form a vital role in keeping things real as it adds value as to how each insurer is really doing at ground level. Plus we have almost 20 years direct specialised TFPI experience, which helps!

We do not go out to change providers unless there is a strong and relevant reason to do so. Normally we use three primary reasons to consider a change in insurer: Cover, Cost, Services … in that order.

We do not act as a premium based broker i.e. cost differential is a relevant factor but only if the cover is equal to or better than the existing scheme … unless the practice has clarified that cost is the primary factor of course.

When we do a price comparison, it is most often only with the nearest cover / service competitor … we do not believe in quoting multiple insurers just for the client to choose the cheapest option.

Due to the experience and portfolio management that Zeal holds, we most often get extremely competitive rates from selected insurers that end up strengthening our recommended course of action if we advise a client to move. Very often the better rates and cover we achieve act as a motivator to the existing insurer to sharpen their pencils. Sometimes it just proves to the practice that they’ve been overpaying!

All in all it shows that the services we provide at Zeal TFPI are valuable, efficient and cost effective.

Contact Mike Scales, TFPI Director, on mike@gozeal.co.uk or 07776 012995.