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, CGU, IH Group. 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, Lloyds and Willis.
AUTHOR
Jason Spits
Recommended for you
ASIC has launched court proceedings against the responsible entity of three managed investment schemes with around 600 retail investors.
There is a gap in the market for Australian advisers to help individuals with succession planning as the country has been noted by Capital Group for being overly “hands off” around inheritances.
ASIC has cancelled the AFSL of an advice firm associated with Shield and First Guardian collapses, and permanently banned its responsible manager.
Having peaked at more than 40 per cent growth since the first M&A bid, Insignia Financial shares have returned to earth six months later as the company awaits a final decision from CC Capital.
