All but one life company silent on PI requirements for advisers

All life insurance companies have included in their agency agreements with advisers that they must have professional indemnity insurance. Now that NZI has said it will not offer PI to firms with three or less advisers the majority of advisers will be unable to comply with their agency agreements.0

Partners Life is the only company which has been willing to speak the issue. Managing director Naomi Ballantyne having the PI clause in the agreements has worked well.

Insurance companies wanted PI cover in agency agreements because "it's what you do when you run a life insurance business", she said.

It gave customers a recourse against an adviser if something went wrong. She says essentially advisers were buying insurance to protect their customers.