PIMS currency and fee alterations for 2015
Due to market conditions we are updating the currency conversion rates on PIMS for 2015 and altering the administration fees accordingly.
The currency conversion rates and flat fees within our PIMS product have remained relatively consistent over a number of years, however to reflect market conditions, we are making some changes.
Currency conversion rates
The conversion rate from GBP to all currencies bar USD will be changed. This means that the minimum premiums and all other related minimums will be changing. As a consequence the minimum premium we will accept for a EUR denominated PIMS policy is reducing to EUR60,000 from EUR80,000. All policy currencies are detailed in the table below:
PIMS 2015+ minimum premiums
| Policy currency | AUD | CHF | EUR | GBP | HKD | JPY | USD |
|---|---|---|---|---|---|---|---|
| Min Premium 2015 | 90,000 | 75,000 | 60,000 | 50,000 | 625,000 | 8,500,000 | 80,000 |
| Min Premium 2014 | 77,500 | 80,000 | 80,000 | 50,000 | 800,000 | 8,000,000 | 80,000 |
These minimums apply to new PIMS policies sold from January 2015 onwards. Currency conversion rates remain unchanged for policies sold prior to 2015. Please make sure you read a copy of PIMS The Facts, to familiarise yourself with all of the minimums that have changed.
Flat administration fee
These are the flat administration fees which will apply when taking out a new PIMS policy in January 2015. They will increase each year with inflation. We measure inflation based on the Isle of Man Retail Price Index. The fee is deducted on a quarterly basis in line with the policy start date, and continues until the policy comes to an end.
PIMS 2015+ flat administration fees
| Policy currency | AUD | CHF | EUR | GBP | HKD | JPY | USD |
|---|---|---|---|---|---|---|---|
| Flat admin fee 2015 | 180 | 150 | 120 | 100 | 1,250 | 17,000 | 160 |
| Flat admin fee 2015 10yr paf | 225 | 187.50 | 150 | 125 | 1,562.50 | 21,250 | 200 |
| Flat admin fee 2014 | 139.50 | 144 | 144 | 90 | 1,440 | 14,400 | 144 |
PAF stands for percentage administration fee. The higher flat administration fee applies if the PIMS charging structure includes a percentage administration fee with a 10 year early surrender period.
Additional valuation fees
If you or your client requests a valuation in addition to the two we provide each year, a fee will apply per additional valuation requested. Remember that policy valuations can be downloaded daily from our Online Service Centre. You and your client can download as many as you need, as often as your want, without charge.
Additional valuation fees
| Policy currency | AUD | CHF | EUR | GBP | HKD | JPY | USD |
|---|---|---|---|---|---|---|---|
| Valuation fee 2015+ | 180 | 150 | 120 | 100 | 1,250 | 17,000 | 160 |
| Valuation fee 2014 | 139.50 | 144 | 144 | 90 | 1,440 | 14,400 | 144 |
Our product literature for PIMS has previously stated that we would apply an additional valuation fee, but up until 2015 we have waived these. Additional valuation fees will apply to 2015+ PIMS policies as well as to those sold prior to 2015.