Handful of PI providers hold advice market
Nearly 50 per cent of financial advisers access their professional indemnity (PI) insurance through one of three insurers with CGU supplying nearly a quarter of planners with PI cover according to data collected as part of the Money Management Top 100 Dealer Group Survey.
From the information supplied by planning groups CGU provided PI insurance for 3403 of the 15069 planners (22.5 per cent) featured in the Top 100, ahead of Axis which covered 2241 planners (14.87 per cent) while self-planners accounted for 2037 planners (13.5 per cent).
Of those planning groups which were reported as being self-insured, all of them were bank based planning operations conducted by the ‘big four banks' — ANZ, Commonwealth Bank, NAB and Westpac, with no non-aligned planning groups stating they were self-insured.
The data also showed that institutions with multiple planning businesses used a number of PI insurance providers with planners within AMP owned groups covered by Axis, Chubb and CGU. IOOF groups used Axis and Dual while NAB owned groups operating outside bank-branches were insured by Axis and CGU. Westpac's non-bank based planning group were covered by Vero which covered about 8 per cent (1211) of Top 100 planners.
Other groups listed as providing PI insurance cover included AIG, Allianz, Catlin, Chartis, Liberty and Lloyds.
Recommended for you
Money Management’s 2021 TOP Financial Planning Groups survey has confirmed that the number of financial advisers operating under the umbrellas of the largest groups has dropped to new lows, Oksana Patron writes.
Money Management’s 2020 TOP Financial Planning Groups research has confirmed the number of planners working at the biggest groups has dwindled to its lowest levels in years, underscoring the end of the banks’ dominance in wealth management, writes Oksana Patron.
The Money Management TOP Financial Planning Group Survey is the longest running annual snapshot of the leading advice groups in the sector.
The last 12 months caught the financial planning industry in the middle of a transition and struggling to figure out what the new rules of the game will be in a still-evolving post-Royal Commission environment, Oksana Patron writes.
