No appetite for PI any longer: compliance expert

While many people in the industry, including the FMA, were surprised by NZI’s shock move to not offer professional indemnity cover to FAPs with under three advisers, there were a few people who saw the move coming a mile away. 

One of these people was Steven Burgess, director of the Compliance Refinery. Burgess says that PI has been an area of scrutiny for insurers.

“In talking to PI providers, they have been telling us that the market is just changing, there just isn’t any appetite for PI any longer.”

Burgess believes that rising risk is causing many providers to consider exiting sections of the market, not just NZI whose announcement last week shook the industry.