PI cover in doubt for small adviser firms

Katrina Shanks

NZI, which is understood to cover 60% of the financial advice sector, has written to the Triple A advisory group saying it will no longer cover advisory firms with less than three people.

In the letter NZI National Relationship Manager Andrew Jollands says the insurer has committed to providing professional indemnity insurance to FAPs with three or more advisers. Effectively blocking a large part of the industry from accessing PI insurance through NZI.

The letter shows a hard reversal from the insurer’s previous position on professional indemnity.

“Following our earlier advice that NZI would no longer underwrite financial adviser’s liability, we have reconsidered our position.