Nearly 50 per cent of financial advisers access their professional indemnity (PI) insurance through one of three insurers with CGU supplying nearly a quarter of planners with PI cover according to data collected as part of the Money Management Top 100 Dealer Group Survey.
From the information supplied by planning groups CGU provided PI insurance for 3403 of the 15069 planners (22.5 per cent) featured in the Top 100, ahead of Axis which covered 2241 planners (14.87 per cent) while self-planners accounted for 2037 planners (13.5 per cent).
Of those planning groups which were reported as being self-insured, all of them were bank based planning operations conducted by the ‘big four banks' — ANZ, Commonwealth Bank, NAB and Westpac, with no non-aligned planning groups stating they were self-insured.
The data also showed that institutions with multiple planning businesses used a number of PI insurance providers with planners within AMP owned groups covered by Axis, Chubb and CGU. IOOF groups used Axis and Dual while NAB owned groups operating outside bank-branches were insured by Axis and CGU. Westpac's non-bank based planning group were covered by Vero which covered about 8 per cent (1211) of Top 100 planners.
Other groups listed as providing PI insurance cover included AIG, Allianz, Catlin, Chartis, Liberty and Lloyds.