Pioneer Underwriters* announced the launch of 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 said this is the market’s first solution that addresses 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.
Pioneer said its 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, said: “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.”
*Pioneer Underwriters, the underwriting group within Minova Insurance Holdings Ltd., launched in April 2011 and trades as both a risk carrier and managing general agent/managing general underwriter.
Source: Pioneer Underwriters
Topics Legislation Europe Underwriting
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