Insurance broker Self Super Insurance is expanding the distribution channels of its self-managed superannuation fund (SMSF) liability cover by aiming to partner with administration providers servicing the sector.
Self Super Insurance has established a working relationship with some of the smaller administration specialists in the industry, such as SMSF360 and Sydney-based Super Retrievers Financial Services.
"We've spoken to a lot of the administrators and we're in discussions with a large one at the moment. It's certainly a key target for us and a great conduit into new funds," Self Super Insurance managing director John Kelly told InvestorDaily.
"When a new fund is being set up, it's a great time to think about an individual's responsibility as a trustee, so that's definitely a focus of ours."
The initiative gives the insurance broking firm a third distribution stream to complement its existing activities of issuing the cover directly to consumers and forming strategic relationships with accounting practices with SMSF clients.
"We're making inroads among all three of those solutions," Kelly said.
The SMSF liability policies offered by Self Super Insurance cover trustees for events such as loss of documents, legal costs arising from investigations into their funds and legal costs incurred in conjunction with compensation claims against third parties.
The cover is underwritten by QBE and since its launch in May this year, it has gained interest from trustees who have been running an SMSF for some time.
"Intuitively, we felt that when we first launched the product there would be far more new trustees than existing ones taking out the cover because if they'd been running their fund for a long time, they'd be comfortable with the compliance risks, but it seems people who have got into it are starting to realise running their own fund is not as easy as they first thought," Kelly said.
