Professional indemnity (PI) insurer Vero and its subsidiary APUA have launched a new PI insurance policy designed for financial planners and investment advisers.
Vero stated the newly worded Financial Planners Standard Professional Indemnity Insurance Policy would be closer in coverage to other policies in the market. The company would continue to offer its existing extended policy for advisers, according to Vero head of casualty Alex Green.
“The new policy is tailored to suit smaller firms or those that need to balance the cost of their professional indemnity cover with the other expenses of running a modern financial planning or investment advisory firm,” Green said.
Before the global financial crisis, the insurer received five claim notifications from the financial services industry per month, which jumped to around 60 notifications at the peak of the crisis.
The financial services industry has expressed concerns over the past couple of years about the lack of competition in the shrinking PI insurance sector, which placed the upward pressure on insurance premiums for financial planning practices.
Alexis risk and compliance principal Christina Kalantzis recently warned that high insurance premiums created difficult conditions for new players to emerge onto the market.
