Insurance provider BareRock has launched a new model offering professional indemnity insurance to regulated financial advice firms.
BareRock has streamlined its processes by creating a purpose-built online proposal form with API integrations which it said has “significantly reduced” the workload expected of firms by the legacy PII market.
Once the necessary information has been gathered in year one of cover, subsequent renewal entails a brief update on any details that have changed in the past 12 months.
BareRock said this removes the complexity and repetitive rekeying of information, giving valuable time back to firms when renewing cover each year.
In September 2023, the firm launched its digital platform offering PII to advisers which aimed to fix the ‘broken’ PII system, by rewarding advice firms that could evidence a risk-mitigation approach with fairer and more stable PII premiums.
BareRock was founded by Jonathan Newell, who has 30 years’ experience in PII, along with intermediary compliance expert John Netting and James Adley, previously an underwriter at Lloyd’s of London.
Newell said: “The majority of PII claims stem from poorly performing advice firms, leaving those who operate at a higher standard unrecognised and unfairly burdened. Embracing a bold, can-do attitude and contrarian thinking, we've flipped the legacy way of doing things entirely on its head.
“Utilising a seamless, paperless online application process, we exclusively provide cover to firms that demonstrate robust risk management protocols. By doing so, we shield these firms from the detrimental impacts of bad actors while incentivising and rewarding good practices.
“Our premiums are designed to accurately reflect the level of risk posed, offering stability and fairness to responsible firms. This new approach is neatly summed up in our strapline: Good Companies, in Good Company.”
When the firm launched its digital platform it partnered with five risk mitigation tools which link to a tiered rewards-based membership programme.
The five tools are:
- Analyser from the lang cat, which enables comprehensive and evidenced due diligence and comparisons across the market of investment platforms and MPS providers.
- EV which provides the EV Pro Solver de-risking tool designed to stress-test retirement planning options and assist advisers to confirm suitability for each client.
- Fintegrate which applies individual client risk analysis to compare current investment and platform costs and performance against the firm’s investment proposition.
- Model Office which benchmarks advice firms’ working environment against five regulatory keys (focus, engagement, promise, systems, people) to validate sustainable good practice.
- Money Alive which provides online video resources to help ensure clients receive consistent information about products and advice, with an audit trail of engagement.
alina.khan@ft.com
