New insurance provider BareRock has launched tailored professional indemnity insurance for Financial Planners and other FCA-regulated advice firms.

The digital-first product claims it can offer fairer and more stable PI insurance premiums to firms that can evidence a risk-mitigation approach.

Firms will need to demonstrate robust processes, a culture of responsible conduct and a track record of consistently delivering positive client outcomes.

Jonathan Newell, CEO of BareRock, said: “We’ve seen time and again that good advice firms have been unfairly burdened with high PI premiums through absolutely no fault of their own. The legacy PII market has put too much emphasis on product count and industry averages, following a one-size-fits-all approach. 

"Many claims originate from poorly performing advice firms, leaving well managed firms bearing the cost of those ‘bad actors’, through higher premiums. 

“It’s an unfair system and it needs to change, and that’s what we’re doing. Our process allows us to separate the good from the bad and recognise well-run firms with a tailored PI cover exclusively to them. This new way of working rewards good practice with premiums that accurately reflect risk levels.”

BareRock has partnered with five risk mitigation tools which it has linked to its tiered rewards-based programme. The five tools are Anaslyser from the LangCat, EVPro Solver, Fintegrate, Model Office and Money Alive.

Firms that use these tools will score more favourably in BareRock’s rating process and receive discounted premiums.

BareRock was founded by Jonathan Newell, who has 30 years of experience in PI insurance, along with intermediary compliance expert John Netting, and James Adley who was previously an underwriter at Lloyd’s of London.