Adviser Ratings and Numerisk have announced a new strategic partnership to create a new professional indemnity insurance product for advisers.
The two companies say they are “…combining industry leading insights with exclusive industry relationships”.
The product is “…supported 100% by Lloyds of London, utilising Adviser Ratings’ insights as a foundation to underwriting and pricing.”
Adviser Ratings is a data and insight platforms for the wealth industry and it says it’s now “…relied upon by financial advisers, asset managers, superannuation funds, and life insurers as a reliable and trusted source of industry insights. This is in part due to the significant investment and capability in data and information sets captured over the past decade.”
Numerisk is an insuretech with an insurance broking operating model that focuses on utilising data to build better insights for insurers.
“These insights enable existing insurers to better identify quality advisers and support Numerisk’s clients to achieve improved outcomes on professional indemnity insurance.”
…this partnership presents an opportunity to solve a significant challenge…
The two organisations say that for financial advisers “…this partnership presents an opportunity to solve a significant challenge, access to high-quality and cost-effective professional indemnity insurance.
“Insurers have long lamented poor underwriting results because of significant claims arising from the impacts of the GFC. Whilst conditions have fluctuated, PI remains a difficult environment.”
Angus Woods, Managing Director of Adviser Ratings, and Richard Silberman, Ex-Aon Director, and Managing Director of Numerisk, identified an opportunity to use AR’s industry knowledge to improve PI underwriting and bring new insurers to the market.
Woods says Adviser Ratings “…saw Numerisk as a natural partner for us as we continue to find ways to leverage our investment in high quality information to improve outcomes for consumers and advisers alike.”
It is expected that the combination of new and innovative data products developed in the partnership and the newly established Lloyds PI Insurance offering will deliver significant improvements for advisers and insurers.
…the tough PI market has played a significant role in the reduction of adviser numbers over the last five years…
Silbermann says the market has been “…financially unpalatable with considerable obstacles for all concerned. The tough PI market has played a significant role in the reduction of adviser numbers over the last five years.”
He adds that there have been few winners in the past decade “…and we see success as a market where insurers can deliver a profit and advisers can enjoy conditions that aren’t a drag on their margins.”
He says the focus is about providing value to all stakeholders – advisers and insurers alike.
“Our view is the only solution to solve these challenges needs to be deeply ensconced in accurate, reliable, and complete, quantitative data across the entire industry,” Silberman says.
