A subsidiary of Jardine Lloyd Thompson Group plc announced yesterday the launch of an analysis model for D&O and E&O insurance assessment.
JLT Specialty USA unveiled its proprietary Investment Management Cost & Volatility Analysis (CVA) Model to help asset managers precisely select D&O/E&O insurance limits. It was developed by JLT’s Analytics and Consulting Practice.
JLT’s CVA model “allows their experienced brokerage and claims teams to identify a firm’s true risks and exposures, and not someone else’s,” a release said. With the new model, investment managers can compare different insurance programs to determine the better option.
The new model offers insight into where recently paid D&O/E&O claims have come from, as well as where they may go as regulatory scrutiny and litigation increase. It is the only model to date that is built on actual claims and loss history from nearly 10,000 investment management D&O/E&O policies. According to a release, five leading investment management D&O/E&O insurance carriers provided data to help in the creation of the model, which began back in 2009.
“We are pleased to offer this unique investment manager CVA model, which quantifies the specific D&O/E&O risks that are relevant to the investment manager community,” Mike Giacobbe, Head of JLT’s Analytics and Consulting practice, said in a statement. “By partnering with markets and leveraging our specialist expertise, we have developed the first tool of its kind based on data and experience to accurately evaluate the appropriate limits and retentions for our clients in this space.”
“We are pleased to bring this new modelling tool to the investment management industry because for the first time our clients can utilize similar data and analytics to drive purchasing decisions,” JLT Specialty USA vice-president Ryan Farnsworth remarked. “We help our clients construct D&O/E&O insurance solutions that are more appropriate for their firm’s risks and exposures rather than just relying on peer benchmarking data.”
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