Rising number of Professional Indemnity Insurance claims affecting price

Rising number of Professional Indemnity Insurance claims affecting price
Date Added: August 02, 2011 06:38:47 AM
Author: Cristinamerry
Category: Business & Economy: Finance and Investment
Financial planning firms in Australia are finding it increasingly difficult to get the professional indemnity insurance they need. Why? Primarily because the various rulings of the Financial Ombudsman Service (FOS) are causing underwriters to adopt a more selective approach, both in terms of who they’re prepared to insure and what they’re prepared to insure against. And, according to an article on moneymanagement.com.au, not only is this resulting in a diminishing list of professional indemnity underwriters from which planning firms can choose (typically no more than three or four), it is also leading to firms restricting the product range they’re prepared to offer to clients. The worry is that when there is an FOS ruling involving a particular type of product, planning firms will start to shy away from that area in order to minimise their Professional indemnity insurance risk. And the result of that will be less choice all round.


Ratings Average rating: (0 votes) You must be logged in to leave a rating.
Comments No Comments Yet. You must be logged in to leave a Comment.

Posts added to our Facebook Page