Professional indemnity insurance is meant to protect good firms so why does it often feel like the best advisers are paying for the worst behaviour? In this episode, BearRock's John Netting and Jonathan Newell argue that PI can be redesigned to reward strong governance, reduce volatility, and strengthen the long-term sustainability of financial planning. Professional indemnity (PI) insurance sits quietly in the background of financial planning, until it doesn't. When premiums spike, exclusions appear, or capacity dries up, it becomes more than an admin headache: it becomes an existential threat to firms, client service, and the profession's ability to invest in better outcomes. In this episode of The GoodStock Tapes, Adam is joined by John and Jonathan from BearRock to explore what's gone wrong with the traditional PI model and what a more sustainable, fairer approach could look like. They start with a frustration many advisers recognise: great firms being priced and treated like average firms, and the uncomfortable reality of cross-subsidisation, where well-run businesses end up carrying the cost of "bad actors" who repeatedly run roughshod through rules and risk controls. John makes a key distinction: insurance exists to cover genuine mistakes, but it becomes destabilising when systemic poor practice is allowed to contaminate the entire risk pool. From there, the conversation gets practical. BearRock's approach is built around a digital-first underwriting process designed to collect clearer, more consistent data, moving beyond the industry's "fillable PDF" status quo. Crucially, their model also introduces tiered "club membership" discounts, rewarding firms that embrace robust governance, risk mitigation, and a culture of doing the right thing. The early signs are encouraging: in BearRock's first renewal cycle, half of firms took up a consultation, and 78% of those firms moved up a tier and unlocked a premium discount — a rare example of an insurance model actively incentivising improvement rather than simply penalising risk after the fact. Finally, they discuss why the sustainability of PI is intertwined with the sustainability of financial planning itself — and tease forthcoming work with Goodstock and eSales to explore how sustainability practices might be recognised within underwriting. If you're an adviser, compliance lead, or firm owner who wants PI to be more than a grudge purchase — this one's worth your time. Follow the show and share it with a colleague who believes finance can be a force for good. About Jonathan and John Johnathan Newell and John Netting are the team behind BearRock, a professional indemnity insurance proposition designed specifically for financial advisers and planners with a focus on fairness, sustainability, and better risk outcomes. John previously led a network as Founder, Director and Head of Compliance, giving him first-hand experience of the pain points advisers face at renewal, and the deeper structural problems created when strong firms are forced to subsidise systemic poor practice elsewhere in the market. Jonathan has worked closely with advice firms and strategic partners across the PI landscape, advocating for a more modern approach to underwriting that recognises the difference between genuinely well-run firms and industry averages. Together, they've built a digital-first PI application process and a "club membership" model that rewards firms for robust governance, strong controls, and a culture of risk mitigation, including consultations designed to help firms reduce risk and, in many cases, unlock meaningful premium discounts at renewal.
