JLT launches ILS Protect, D&O/PI, Cybercrime insurance for ILS fund managers


JLT Group has launched an interesting new insurance product specifically designed for insurance-linked securities (ILS) fund managers. ILS Protect is the first insurance product to offer Directors & Officers plus professional indemnity and Cybercrime insurance coverage designed for ILS funds.

The ILS Protect product will be sold through the JLT Specialty USA unit of the insurance and reinsurance broker, and the ILS Protect product was designed by JLT’s Financial Institutions Practice with the help of a panel of Lloyd’s syndicates and U.S. carriers.

JLT said that the majority of ILS funds have D&O and PI insurance developed for traditional investment managers or for retail insurers, which may not be sufficient to truly cover their exposure to claims.

The policies they use today are not structured to meet the needs of ILS fund managers and reinsurance firms that manage third-party capital, JLT says. The traditional policies do not contain terms and conditions that accurately reflect how an ILS fund operates and what risks the ILS fund managers are exposed to, leaving them with coverage gaps that JLT believes could create significant issues during loss and subsequent claims.

ILS Protect has been designed to address all of these issues, using an easy to understand policy language, JLT said.

“We’re thrilled to bring ILS Protect to market. Our product targets the specific liability exposure ILS fund managers face when managing reinsurance trades and catastrophe related investments. The ILS Protect is the first D&O/ PI and cybercrime solution designed especially for the ILS community,” commented Mark Flippen, Senior Vice President, Financial Institutions Practice at JLT Specialty USA.

“We are pleased to offer this unique product to ILS fund managers. This product highlights the benefits for our clients of our US, UK and Bermudian specialists working together,” added Paul Towler, Senior Partner, Financial Institutions Practice at JLT Specialty Limited.

It’s a real sign of the success of the ILS market, its investment fund managers, and of the size of the ILS market as a whole, that now the sector is seen as one worth targeting with specific insurance coverage designed specifically to meet its needs.

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