17 September 2020
3 min read
As PII is a legal obligation AFSL holders may be faced with tougher underwriting, reduced capacity, fewer competitors and higher premiums.
So, can RegTech help licensees alleviate insurers’ risk concerns?
Aon, a leading professional indemnity insurer, and Iress, whose Xplan advice software is used by thousands of financial advisers, have many shared clients, so we have come together to share our insights on this critical industry-wide issue.
Aon is a leading global professional services firm providing a broad range of risk, insurance, retirement and health solutions. Aon has approximately 50,000 employees in 120 countries. Ruth Parker is a Client Manager in the Financial Services Group specialising in financial institutions & professions, part of a team servicing Australia nationwide.
Iress is a technology company providing software to the financial services industry. More than 9,000 businesses and 500,000 people globally using Iress software to help them perform better and deliver more. Stuart Frith, who joined Iress from ASIC, heads up Iress’ data intelligence business and is responsible for Iress’ data analytics software, Lumen, used by financial advice licensees to identify and manage potential risk and turn data into valuable business intelligence.
Albeit in its infancy, RegTech can go some way to alleviate concerns when underwriting risk. With the ability to run a number of risk algorithms, Lumen provides licensees with a comprehensive view of their advisers' behaviours, the advice process and the advice given; capabilities far greater than what can be achieved under the traditional manual audit model—allowing for potential risks to be caught (and dealt with) earlier than later. From where we are sitting, there is an opportunity for Lumen to have a positive impact on PII in this post-RC world.