Ace Insurance is underwriting a new PI scheme for Australian certified practising accountants (CPA), whose association has accused the local industry of “market failure”.

Greg Larson, CPA Australia CEO, says the optional PI scheme will provide affordable cover for those affected by excessive premium hikes. He said last month’s decision by state and federal ministers’ to introduce a PI capping scheme for professionals assisted the scheme’s development.

Strong support by all governments for a national framework of professional standards legislation, proportionate liability changes and amendments to the Trade Practices Act “are already making a difference to the insurance market in Australia”, he said. “This new environment will encourage insurers to re-enter the market and to write business for professionals.”

Up to 5500 CPA members are eligible for the scheme.