Fourth Line has partnered with insurance broker Numerisk to launch a new professional indemnity (PI) insurance solution for financial advice practices.
The two firms have worked closely together to produce a new data-driven approach to PI insurance. This includes a deep analysis of the monitoring and supervision solutions offered by Fourth Line, such as:
- 120-point compliance checks
- Statement of Advice (SOA) pre-vetting
- SOA post-vetting
- Risk and compliance reporting
Fourth Line clients will be able to access sharper-priced PI insurance premiums and enhanced policy terms. In particular, the partnership focuses on self-licensed financial planning practices, institutional licensees and dealer groups.
“Our collaboration with Numerisk puts the power of PI insurance negotiations back into the hands of licensees and advisers, and underscores the Fourth Line commitment to delivering value through innovative solutions and strategic partnerships,” the risk management and compliance system stated.
With SOAs posing potentially significant risks to Australian financial services licences (AFSL), the new solution can mitigate these risks through Fourth Line’s advice assurance technology.
“These services can be incredibly valuable in reducing risk and improving a practice risk profile, however when not fully understood by insurers, the benefits can be overlooked.
“Numerisk’s understanding of Fourth Line’s products means that we can articulate the value of these solutions to ensure that insurers understand the value and consider this when providing terms for PI insurance.”
Earlier in March, Adviser Ratings also entered a strategic partnership with Numerisk to launch a PI insurance product to the financial advice profession.
According to Adviser Ratings, the offering utilises the research firm’s insights as a foundation to underwriting and pricing, as well as Numerisk data on insurance broking.
The new offering seeks to solve a consistent challenge for advisers: accessing high-quality yet cost-effective PI insurance as an advice practice.
Moreover, both companies expect the PI solution to expand the adviser supply pool in Australia and ultimately strengthen trust in the industry by providing a level of coverage for advisers’ clients that was not previously offered.
“We saw Numerisk as a natural partner for us as we continue to find ways to leverage our investment in high-quality information to improve outcomes for consumers and advisers alike,” Angus Woods, managing director of Adviser Ratings, said at the time.
