Chubb Insurance Company of Europe is strengthening its focus on financial services with the launch of an insurance policy aimed specifically at hedge funds.
Chubb's hedge fund policy has been designed to provide specific professional indemnity (PI) cover for hedge fund managers as well as specially tailored directors and officers' (D&O) liability insurance.
Commenting on the launch of the hedge fund policy, John Taylor, Chubb's UK and Ireland Manager for Financial Institutions, said: 'This policy builds further on Chubb's extensive capabilities in the asset management sector. The demand for this new product was driven by strong growth in the hedge fund industry and the increasing exposure of funds and their management to potential litigation.'
'New hedge funds are being established almost daily, attracted by the enormous flow of money seeking alternative investment strategies and this inevitably increases the potential for legal action by demanding investors. Combine this issue with the Financial Services Authority's clear message to hedge funds that their trading behaviour is under scrutiny, and it's easy to see why hedge fund managers are becoming increasingly exposed, both individually and corporately.
'The hedge fund policy differs from general D&O and PI wordings because it is designed to insure a range of entities within what can be quite complex organisational structures, including offshore funds, partnerships, advisers, investment managers and other parties all operating from legally and geographically separate locations. The benefit of our policy is that it will respond to the broad range of D&O and PI exposures faced by the numerous entities involved in the operation of the hedge fund.'
Chubb Insurance Company of Europe S.A. (Chubb Insurance) provides specialist commercial and personal lines products through independent brokers. It is part of the NYSE-listed Chubb Corporation. With more than 30 offices in twelve countries, Chubb Insurance consistently earns high ratings for financial strength from the leading credit rating agencies. Chubb Insurance is acknowledged as the UK's leading specialist insurer of affluent homes, fine art and valuables