Vero 'selective' on planner PI
Major professional indemnity (PI) insurer Vero has confirmed it has adopted a more "selective" approach in servicing the financial planning market.
The company denied suggestions that it had withdrawn from any new financial planner PI business, but acknowledged that while it was still writing new business it was doing so on a "selective" basis.
Vero's "selective" approach has come at the same time as planners have complained to Money Management that professional indemnity cover is becoming increasingly hard to obtain - with some suggesting it is actually impacting the types of advice they are prepared to deliver to clients.
They also complain that there are now effectively only four providers in the market: Vero, AXIS, Chartis and Dual.
The concerns around Vero's approach have come just days after the Shadow Assistant Treasurer, Senator Mathias Cormann, used Senate Estimates to question the Australian Securities and Investments Commission's (ASIC's) approach to the regulations requiring planners to hold PI insurance.
ASIC deputy chairman Peter Kell told the Senate Committee that the regulator had a strong interest in ensuring that professional indemnity insurance was available and covered the rights sorts of issues for the advisory sector.
Cormann said there was a contention that there were four underwriters left in the sector and that premiums had risen by 170 per cent over four years, "even for firms with clean claims records".
Kell replied: "We are very much aware that it remains an ongoing challenge for the advisory community".
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