Advisers face steeper PI premiums, free run-off cover disappears
That was the view of one less-than-happy camper on a recent webinar, hosted by Financial Advice NZ and advice firm Curated Risk, to discuss major changes to professional liability insurance that come into force on July 1.
Insofar as advisers and FAPs are concerned, the disgruntled adviser nailed it with his assessment of the changes coming down the line.
As Curated Risk director Clinton Stanger puts it on his website: “The professional indemnity market in New Zealand is experiencing a hardening cycle – increasing premiums, reduced capacity and tightening policy conditions.”
The big picture is more nuanced than that. Under-pinning much of the change in the way professional indemnity (PI) insurance will delivered are structural changes to the financial services sector itself, with the new licensing regime coming into force in March next year.
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