Our report about a group of advisers who are challenging the PI market with their own product was this week’s most-read story…
A new entrant has joined the professional indemnity market. Quadrant PI is the brainchild of a group of advisers who saw their PI premiums unexpectedly rise and so launched their own scheme which is underwritten by QBE.
The firm’s directors are Royden Shotter (chairman), Jason Kilworth, Kevin Smee and Tony Vidler.
Vidler is the firm’s director and says while some PI providers require advisers to join an industry association – and agree not to shop around before giving them a quote – Quadrant welcomes all-comers who meet its criteria.
Advisers who want to read the firm’s policy can see it here before buying.
Vidler says: “PI insurance is notoriously expensive, largely because most Kiwi providers are subsidiaries of Australian insurers who price for that market, without taking into account that risk and claims experience is different in New Zealand.
“It’s a very crowded space over there with a lot of people looking for trouble and a lot of trouble to be found. There are big company brands and big scale in advice. That’s not the structure here.”
Quadrant’s scheme includes retroactive cover, meaning a policyholder is covered for advice he or she has given in the past, no matter which insurer held the policy at the time.
“It’s a pretty big deal,” says Vidler. “Most advisers don’t understand how important this is.”
Quadrant’s target market is independent advisers, many of whom belong to small-to-medium-sized FAP groups.
Claims made under the Quadrant PI policy will be handled by HutchinsonRodway.