The Financial Planning Association (FPA) is developing a planners’ PI facility in conjunction with AIG’s American Home Assurance.

The facility will try to improve the cost and availability of PI cover for FPA members, CEO Kerrie Kelly said.

“The cost and availability of adequate PI cover has been a serious issue for financial planning businesses in Australia for several years.”

Jason Grant, American Home’s Australasian Regional Manager for Financial Lines, says the insurer has proven experience in underwriting planners’ PI, and under its three-year agreement with the FPA it will be responsible for designing a product to “meet the insurance requirements imposed on principal members by the FPA”.

In the first year of the agreement American Home will pay $60,00 to the FPA’s national quality assessment program, which educates members on relevant compliance and risk management obligations.