National Insurance Brokers Association (NIBA) members will benefit from a softening in professional indemnity (PI) premiums when they renew their policies with the NIBA facility, says board member Alan Bishop. The Perth-based PI committee chairman told Sunrise Exchange News that although the policy is “still being polished”, talks with the underwriters have produced “some very positive results”.

“We’ve seen some improvements occur through the softening of the market and we’ve also been able to overcome some policy wording concerns,” Mr Bishop said. “The wording now takes into account the Financial Services Reform Act and its new disclosure requirements.”

The NIBA facility developments come shortly after cluster groups Steadfast and IBNA introduced their own PI schemes, a move that NIBA CEO Noel Pettersen says is “understandable”.

He said although NIBA has negotiated some softening in premium prices, its PI facility is still subject to individual evaluation. “Personal risk management techniques and claims history play a part in the levels of premiums, and many members will get significant discounts,” he said.

The IBNA and Steadfast PI facilities – which have been offered to members at their recent national conferences – are welcome to join the field, Mr Pettersen said. But he warned: “Brokers should remember any new PI scheme is only as good as their first major claim.

“NIBA’s PI scheme has been and continues to be there for brokers’ even through the HIH crisis cover was harder to obtain,” he said. “Since its inception more than 18 years ago we have negotiated with underwriters to ensure brokers get the most thorough cover for the best price. And nothing has changed there, even though it seems some people have short memories.”