Pioneer Underwriters (Pioneer) has launched a new EU regulatory compliant product for alternative investment fund managers (AIFMs).
This specialist product is aimed at AIFMs domiciled outside of the EU, which in addition to providing traditional financial lines cover, also ensures policyholders are compliant with the insurance provision requirement of the EU Alternative Investment Fund Managers Directive (AIFMD) which came into force in July 2013.
Pioneer believes that this is the market’s first solution addressing the needs of non EU domiciled fund managers and forms part of a suite of products covering the specialist risks faced by a wide range of financial companies, including stand-alone AIFMs, and larger institutions with alternative investment divisions, such as mutual fund managers, banks and insurers.
The AIFMD requires AIFMs who market within the EU to hold either sufficient capital or have appropriate insurance in place to meet any financial loss arising from professional negligence claims related to their EU business or EU domiciled clients. The Pioneer team developed this product in response to demand, particularly in the US, where locally available financial lines insurance policies do not generally comply with these new EU rules.
Richard Coello Head of Financial Institutions’ Underwriting, Pioneer Underwriters, says: “This is a major innovation for Pioneer demonstrating our strong expertise in alternative fund management and our understanding of its regulatory issues. This expertise has allowed us to address the concerns of our global clients with a tailor-made product that protects their EU activities and complies with the relevant EU regulatory requirements.”
