A Lloyd’s-backed professional indemnity cover designed for financial advisers has launched under a partnership between Adviser Ratings and insurtech Numerisk.

The partners say the product will deliver improvements for advisers and insurers amid challenging conditions in the professional indemnity market, where premiums have risen sharply as insurers respond to worsening claims in recent years.

“The tough [professional indemnity] market has played a significant role in the reduction of adviser numbers over the past five years,” Numerisk MD Richard Silberman said.

“There have been few winners in the past decade, and we see success as a market where insurers can deliver a profit and advisers can enjoy conditions that aren’t a drag on their margins. Our focus is about providing value to all stakeholders – advisers and insurers alike.

“Our view is the only solution to ... these challenges needs to be deeply ensconced in accurate, reliable and complete quantitative data across the entire industry.”

The product utilises Adviser Ratings’ industry insights to support underwriting and pricing processes.

Adviser Ratings MD Angus Woods says the data company has a history of delivering value to advisers.

“We saw Numerisk as a natural partner for us as we continue to find ways to leverage our investment in high-quality information to improve outcomes for consumers and advisers,” he said.