TEn aims to write over £500,000 in premiums with LV= over the next two years
Network TEn insurance has struck a binder agreement with LV= to provide cover for the motor trade sector.
The new agreement will move some of the network’s £2.2m existing motor trade business to LV=, and the network said it would also help it win new business.
TEn business development manager James Sharp said: “Broker members generally like it when we get binders because it means we can do things more quickly.
“Binders give us some quoting, discounting and policy issuing capabilities and mean we have less need to go back to the underwriters.”
The binder is TEn’s second motor trade deal. It has had a £450,000 agreement with Arista in place for over five years.
Arista was bought by Towergate last month.
Sharp told Insurance Times the arrangement with LV= gave it options if the service deteriorated under its new owner.
He said that TEn will decide what business goes where in the interests of the client based on the best mix of price and product features.
“The relationship with Arista will carry on for as long as the relationship remains profitable,” he said.
TEn aims to write over £500,000 in premiums with LV= through the binder over the next two years.
The insurer already has £250,000 of open market business with the network, some of which could move to the binder.
LV= commercial motor underwriting manager Paul Miles said: “LV= are delighted to be working with TEn on their new motor trade binder, and to have been chosen as their partner of choice. We look forward to a long and profitable relationship with TEn over the coming years”.
As an appointed representative network, TEn holds all of the terms of business arrangements (TOBAs) directly with insurers.
Its broker members, who operate as appointed representatives, are then given some delegated authority to write motor trade business.
TEn also has a number of internal underwriters who work with the appointed representatives on the policies that form part of the binder agreements.