Insurer exits PI for planners
QBE is pulling out of the professional indemnity (PI) market for financial planners and stockbrokers, with effect from June 1.
In a letter dated April 9, Executive GM Technical and Operations Jason Brown told brokers the insurer has “decided to withdraw from offering PI and directors’ and officers’ product lines to financial planners and stockbrokers”.
Mr Brown says changes to the Corporations Act and “a number of major financial collapses over the last two years” forced the insurer’s hand.
Financial Planning Association (FPA) CEO Jo-Anne Bloch last month expressed concern at the lack of availability of PI cover.
Under ASIC’s Regulatory Guide 126: Compensation, planners are required to have “adequate” PI insurance by July.
“Over the past few years the number of insurers offering PI cover to financial planners has greatly reduced,” Ms Bloch said. “Our members have also tabled concerns at the variety of terms and conditions that are available, and the limitations that come with commercial arrangements.”
The FPA has tendered submissions for a group PI policy, which it plans to have in place for its members by June 2.
In an attempt to sweeten the blow, Mr Brown says QBE will consider providing PI cover to financial services professionals “where financial planning services form part of the overall insured’s occupation”.
In a letter dated April 9, Executive GM Technical and Operations Jason Brown told brokers the insurer has “decided to withdraw from offering PI and directors’ and officers’ product lines to financial planners and stockbrokers”.
Mr Brown says changes to the Corporations Act and “a number of major financial collapses over the last two years” forced the insurer’s hand.
Financial Planning Association (FPA) CEO Jo-Anne Bloch last month expressed concern at the lack of availability of PI cover.
Under ASIC’s Regulatory Guide 126: Compensation, planners are required to have “adequate” PI insurance by July.
“Over the past few years the number of insurers offering PI cover to financial planners has greatly reduced,” Ms Bloch said. “Our members have also tabled concerns at the variety of terms and conditions that are available, and the limitations that come with commercial arrangements.”
The FPA has tendered submissions for a group PI policy, which it plans to have in place for its members by June 2.
In an attempt to sweeten the blow, Mr Brown says QBE will consider providing PI cover to financial services professionals “where financial planning services form part of the overall insured’s occupation”.