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The company denied suggestions that it had withdrawn from any new financial planner PI business, but acknowledged that while it was still writing new business it was doing so on a "selective" basis.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".
Recommended for you
ASIC has released the results of its first adviser exam to be held in 2025, with 241 candidates attempting the test.
Quarterly Wealth Data analysis has uncovered positive improvements in financial adviser numbers compared with losses in the prior corresponding period.
Holding portfolios that are too complex or personalised can be a detractor for acquirers of financial advice firms as they require too much effort to maintain post-acquisition.
As the financial advice profession continues to wait on further DBFO legislation, industry commentators have encouraged advisers to act now in driving practice efficiency.