It’s taken 4 years, but we’re proud to announce that we have opened up new solutions in the Professional Indemnity insurance space through our partnership with Numerisk.
The focus for our efforts in this space was catalysed by the depressing freefall in adviser numbers, many of whom cited the prohibitive cost and limited access to Professional Indemnity (PI) insurance as critical factors compelling their departure.
Amid these challenges, we believe the collaborative effort between Adviser Ratings and Numerisk has emerged as a beacon of innovation in this space. It shows that persistence and the drive to showcase how strategic partnerships can better deliver outcomes for the advice industry. But how?
Adviser Ratings has revolutionised the way adviser quality is assessed through its proprietary Adviser Quality Score. By synthesising data from a plethora of sources, including the Australian Financial Complaints Authority—which has reported a proportional decrease in complaints, barring major incidents like Dixon Advisory—Adviser Ratings offers a nuanced and comprehensive evaluation of advisers when assessing risk (in this instance for insurers and underwriters).
Numerisk, led by principal Richard Silberman, a 20-year insurance veteran (and ex AON director), had the vision to understand and utilise the information set that Adviser Ratings has gathered over the last decade, culminating in this partnership.
Richard stated, “The exit of advisers post-Royal Commission not only underscored the systemic issues within the industry but also highlighted the acute need for a more supportive infrastructure for PI access and affordability. Recognising this, we have dedicated years with Adviser Ratings in conceptualising a solution that not only eases the burden on advisers but also sets a new benchmark in the market.”
This data driven initiative aims to provide a “benchmark” that accounts for the unique challenges and needs of the advice sector, especially considering many underwriters' limited experience and the generally unfavourable view of the sector in the General Insurance (GI) space.
Historically, underwriters have allocated their focus to more appealing classes, inadvertently neglecting the advice space. However, the partnership between Adviser Ratings and Numerisk signifies a pivotal shift, emphasising industry-wide business intelligence and transforming it into a critical tool for underwriters. This innovation not only saves time but also furnishes underwriters with essential insights, encouraging their engagement in areas they might have previously overlooked.
The endorsement of this data-driven approach by Lloyds represents a significant milestone for the industry, showcasing the potential of comprehensive data analysis to support markets facing considerable challenges.
Adviser Ratings’ dedication to assembling and enhancing a robust information set has paid dividends, revealing a positive trajectory in adviser quality and the efficacy of advice. This has laid the groundwork for the creation of a data-centric insurance solution by Numerisk, which has now gained recognition within the esteemed corridors of Lloyds.
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