Angus Woods (left) and Richard Silberman

Adviser Ratings has partnered with insuretech Numerisk to argue the case for high quality advisers to show they are less of a risk to insurance suppliers, in a bid to solve the issue of rising PI insurance costs.

The joint venture aims to demonstrate the quality of advice to insurers and Adviser Ratings founder Angus Woods tells Professional Planner data captured over the past six years shows the level of quality of Australian advice practices.

“It’s the first time from a data point of view that the market or insurers have access to data of this level of depth,” Woods says.

The partnership has been in the works for the last four years, due to the undersupply of PI insurance following the Hayne royal commission.

“There’s an absence of insurers in the market despite the fact the quality of advice has gone up,” Woods says.

Numerisk founder Richard Silberman says that although the advice market has improved, the conditions around pricing and coverage have not followed suit.

“That will work really well with existing insurance to try and get better results, but we need more insurers, so we need more solutions,” Silberman.

The product was also the result of negotiations with Lloyds in London, as well as Keystone Underwriting, which will rely on Adviser Ratings data to help influence pricing and conditions.

“If you’re a quality adviser it’s going to come through [Adviser Ratings] data and we will be able to work with practices exclusively to be able to hopefully achieve a better outcome, whether that’s coverage, terms and conditions, or pricing,” Silberman says.

Despite the perception of self-licensed and licensed advisers to the minds of insurers, with the former being looked at more favourably, Silberman says the Business Intelligence rating is “agnostic” to adviser and business structures.