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Unintended consequences of Royal Commission creates an insurance 'Perfect Storm' for financial service advice firms

Business Insurance Professional Indemnity Insurance Financial Services Insurance

The Royal Commission into banking and financial services misconduct has savaged the reputation of the financial advice sector. It is not just brand image that is suffering. Any firm directly involved in the provision of financial services advice to the big banks or industry superannuation funds under contract will be in for a rude surprise when their annual Professional Indemnity Insurance rolls around for renewal.

I have spent most of my career providing insurance solutions to professional people. We are currently seeing a perfect storm for financial advice firms. Virtually all the specialised insurance underwriters in this space are withdrawing their capacity or sitting on the sidelines in direct response to the intense media scrutiny of the more shocking examples of misconduct being aired at the recent Royal Commission hearings.

Fortunately, I have been able to work closely with my longstanding insurance partners and clients to help them work through this difficult period. In addition to drawing on long standing underwriter relationships, I am working with my clients to:

Ensure that their comprehensive renewal proposals are submitted to underwriters well in advance
Any additional information is put together in a well-considered manner.

This helps pre-empt any concerns that may arise, during what have become delicate and rigorous renewal negotiations. If renewing your insurance is proving a challenge, message me and I will help you find a solution. Connect with Byron today to learn more.

Insurance Industry Insight Royal Commission Insurance Broker

General Advice Warning: This advice is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is appropriate for you and your personal circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.

All information above has been provided by the author.

Byron McPherson, Reliance Partners (Australia), AFSL 232446