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.
