Axa Australia has slashed the cost of its professional indemnity insurance (PI) to half that of its competitors.
Its PI premium costs $225 plus 0.375 of the adviser’s income. For an adviser earning $400,000 a year, this would mean PI for just $1725.
The premium gives advisers $15 million in claims on advice activities with an excess of $5000.
It is the sixth consecutive year Axa has cut premiums and represents a 20 per cent reduction.
“This significant shift was made possible by the excellent low claims record of Axa advisers and the quality of advice being provided to their clients,” Axa national compliance and advisory services manager Simon Wallace said.
“We’ve negotiated a package that’s much cheaper than our competitors. It’s a testament to the strength of our compliance regime and the quality of the advice our advisers are giving.”
As part of the new PI deal Axa certified quality advice practice (CQAP) accredited practices will receive an additional 10 per cent discount from their insurer.
“Only those practices whose business management and service procedures meet the highest standards of quality financial advice can achieve CQAP status. Practices often need to spend at least six months preparing to attain CQAP status,” Wallace said.
Axa Financial Planning has 371 advisers and 215 practices.
