Can RegTech help licensees alleviate insurers’ risk concerns?

One of the flow-on impacts of the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry (RC) is the implications on the availability, costs and conditions of Professional Indemnity Insurance (PII) for Australian Financial Services License (AFSL) holders.

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.

Download this paper to learn about:

  • How the financial services Royal Commission has impacted the PII market
  • How insurers and underwriters have responded to this
  • Impacts of the financial services Royal Commission and draft legislative changes for advice licensees
  • The key elements licensees need to have in place to satisfy insurers and optimise PII terms and costs
  • The role technology plays in satisfying the requirements of PI insurers
  • Specific functionalities/capabilities that directly support the key elements of governance, controls, oversight and audit procedures
Download now

Contributors:

About Aon

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.

About Iress

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.

Did you know that Lumen can help minimise the risk to licensees, advisers and insurers?

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.

Learn more about Lumen