'Nine out of ten fat cats prefer D&O'
08/04/2008
Uptake of directors' and officers' (D&O) insurance among hedge fund managers is greater than 90 per cent, it has been suggested.
The figure is put forward by Robert Kelly of a London-based broker, who claims that fewer than one in ten fund managers lack the form of cover.
His assertion is published by Euromoney, which notes that holding cover is being overtaken in the list of concerns by a focus on obtaining insurance which is suitable to the holder's needs.
Mr Kelly tells the publication that D&O cover has previously been sought in an attempt to ensure the fund's directors' assets are not at risk should an investor make a claim.
"Now, however - and in particular with the push to have independent directors - we are seeing managers take a closer look at the quality of their cover," he notes.
The news is reminiscent of a surge in professional indemnity applications which occurred in 2006.
Increased requests for cover from hedge fund managers, IT consultants and media professionals led to a growth in the market, although underwriting capacity was able to meet demand with affordable policies still available.
PYV are one of the UK's leading providers of professional indemnity insurance. This news article has been produced by Adfero in collaboration with PYV and its unauthorised use is not permitted.
(c) 2008 Adfero Ltd.
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