AXA’s professional indemnity insurance premiums have dropped for the sixth straight year, dipping by 5 per cent on average. It dropped another 10 per cent for financial advisers with certified quality advice accreditation. AXA is covered by CGU Insurance.
The drop reflected the confidence AXA and their insurer had in each other. AXA did not receive a single complaint about their business from a client, and their claims record had been very low, according to an adviser.
Their advice guidelines were also relatively conservative, and their research overlay process meant they screened out many products that hadn’t met their requirements, for example in the managed investment scheme space.
Their compliance standards were also a factor in the lowering of their PI, with above industry standards for adviser education and compliance standards.
The scale benefits they received from growing AXA’s distribution channels also allowed them to negotiate better rates with their underwriter or the broker who advises them.
