PI insurance still a 'hot topic': Cooper
The deputy chairman of the Australian Securities and Investments Commission, Jeremy Cooper, has flagged that the regulator will continue to monitor the availability of professional indemnity insurance to financial services companies in what he described as a “hardening market”.
“We are well aware of the hardening market cycle here, but remain confident that licensees are now able to find a minimum standard of cover,” Cooper said.
“A survey of our licensees suggests that, at the moment, most licensees who need PI insurance are able to get it and there are still a reasonable range of providers, but of course this might change as policies come up for renewal this year and we will continue to monitor this.”
Cooper said PI insurance for licensees “continues to be a hot topic” with it looking likely that the new Commonwealth regime for the regulation of credit providers and brokers, including margin lenders, would require these entities to have PI insurance coverage.
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.
