AXA professional indemnity insurance drops for sixth consecutive year
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.
Recommended for you
The Federal Court has dismissed a conflicted remuneration case brought by ASIC against the director of life insurance distributor Freedom Group, where Bali holidays and Vespa purchases were among sales incentives.
Policy and advocacy specialist Benjamin Marshan has left the Council of Australian Life Insurers after less than a year, having joined in March from the Financial Planning Association of Australia.
The declining volume of risk advisers meant KPMG has found a rising lapse rate for insurance policies arranged by independent financial advisers, particularly in the TPD and death cover space.
The Life Insurance Code of Practice has transferred from the Financial Services Council to the Council of Australian Life Insurers.
