Financial adviser works to reduce its professional indemnity insurance

One financial services advisor has announced it is working with its insurance provider to reduce the PI insurance premiums for its advisers.

The dealer group Patron Financial Advice recently managed to reduce its professional liability insurance costs by 13 per cent.

David Hasib, chief operating officer for Patron, stated that the dealer group aims to reduce costs for its advisers whenever it can.  Part of that cost reduction strategy was working closer with its business liability insurance provider in order to identify the key drivers behind Patron’s insurance premium payments.

Mr Hasib stated that Patron was able to reduce its insurance premiums by 13 per cent by working with its insurer.  The dealer group achieved this by demonstrating to its insurance provider how it had mitigated risks in several areas such as its fee-for-service model, practice management, and back-office support.

Mr Hasib stated that Patron had alleviated a large proportion of its risk in the face of its advisers outsourcing their back-office maintenance to the dealer group.  As Patron has rigorous procedures and systems in place, this provides an approach which is more uniform, he added.  Doing so reduced the dealer group’s premium by a substantial amount.

Some other factors that aided in Patron’s premium reductions to a lesser extent were its preparation and practice management ahead of impending reforms.  Mr Hasib included the dealer group’s network’s fee-for-service operation basis.

Mr Hasib added that Patron also demonstrated to its insurance provider that the dealer group had an approach to client portfolio management that was uniform.  Patron also showed its insurer that it worked closely with the firm’s investor review committee comprised of its professional standards manager and an additional group of advisers.

Patron’s network stretches across approximately 38 firms with a network of more than 50 authorised representatives.

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