Financial planning software provider Asendium has partnered with broker LML Insurance Group to offer professional indemnity (PI) insurance to advisers struggling with soaring premiums. 

Australian Financial Services Licence (AFSL) holders who use Asendium for their “advice production” may be eligible for a reduction of up to 20% off the insurer’s standard PI rates. 

“The PI insurer, through LML, is confident that the advice produced will be enhanced to meet compliance and regulatory requirements, while lowering their risk of claims, and improving defensibility given the architecture of the Asendium solution,” LML MD Bryan Leibbrandt said. 

He says data suggests PI insurance costs have increased by more than 75% between 2019 and 2022, and although it is leveling off somewhat with additional capacity coming into the market, “we are still seeing pockets of increases”.  

“Attributing factors, such as clients’ risk profiles, fraudulent claims, poor underwriting results and a surge in claims, have seen Australians becoming increasingly litigious,” he said. 

“We see the robust compliance system that Asendium has created as a positive for insurers, because it creates an environment of tangible transparent business processes and procedures with diligent communications and record keeping.” 

Asendium CEO Scott Miller says the business’s mission is to help every eligible Australian access high-quality, affordable financial advice and to empower the financial planners in doing so. 

“This starts with streamlining the advice production process for financial planners and providing the guard rails for AFSLs to manage their compliance responsibilities with confidence through Asendium.”