Cheaper PI premiums for AXA advisers

AXA has constructed a new professional indemnity (PI) insurance deal for its advisers that, according to independent research, will set their premiums around 50 per cent lower than the market at large.

As a result of the new arrangement, advisers operating under the AXA banner will have access to $15 million worth of PI cover with an excess of $5,000 by paying a premium of $225 plus 0.375 per cent of their incomes.

The financial services giant cited the low claims record of its advisers as one of the main reasons that allowed the new deal to be put together.

“We’ve negotiated a package that’s much cheaper than our competitors. It’s a testament to the strength of our compliance regime and the quality of the advice our advisers are giving,” AXA national compliance and advisory services manager Simon Wallace said.

The announcement means AXA has now been able to reduce PI premiums for its advisers for six consecutive years.

The latest reduction represents a 20 per cent saving in comparison to premiums paid in 2006.

Furthermore advisers who have the financial services company’s Certified Quality of Advice Program (CQAP) accreditation will qualify for an additional 10 per cent discount on their PI premiums.

“Only those practices whose business management and service procedures meet the highest standards of quality financial advice can achieve CQAP status. Practices often need to spend at least six months preparing to attain CQAP status. It’s a prestigious accreditation that sets the industry benchmark for providing quality financial advice,” Wallace said.