AIG reveals IMI product update

AIG reveals IMI product update

AIG reveals IMI product update AIG has announced a revamp of its investment management insurance (IMI) policy.

The firm, which first launched IMI cover in Australia in 1999, has revealed a revitalised offering which combines key D&O covers alongside specific extensions for pre-claim inquiries and mitigation.
Search and compare insurance product listings for Investment Managers from specialty market providers here

Liliana Uhrik, AIG’s national financial institutions and cyber liability product manager, said that the re-launched product, called IMI 2017, comes as the funds management industry in Australia continues to change.

“The IMI 2017 policy wording improves on the former policy wording, with the provision of additional covers and extensions in certain sections,” Uhrik told Insurance Business. “The definitions are now in one central location to make the document more user-friendly and the management liability section has been updated in line with the AIG Gold Complete for Financial Institutions wording.”

The new wording offers fewer exclusions and the broadest D&O cover on the market in the IMI space, Uhrik said, and also includes occupational health and safety as well as specific coverage extensions for social engineering/impersonation fraud.

“We are responding to new and emerging risks with the provision of our specific coverage extension for social engineering and impersonation fraud protection; which are increasing threats as cyber-hackers become more sophisticated in online manipulation and deception,” Uhrik continued.

She noted that the current “volatility” in fund performance, alongside allegations of unsuitability, misrepresentation and breaches in investment mandate and registry investigations can all make investment managers vulnerable.

“Not only are investment managers exposed to legal and regulatory action from investors and their shareholders, regulators and third parties, they may also be subject to fraud perpetrated against them by unknown third parties or even their most trusted employees,” Uhrik noted.

Investment managers also face repercussions from legislative non-compliance which also brings challenges.

“These issues may lead to unforeseen costs that not only undermine the investment managers’ performance and the fund’s returns – they can also result in repercussions that extend well beyond the immediate financial damage,” she explained.

For brokers, Uhrik said that highlighting the extensive risks faced by the industry is the best way to educate clients on taking up the cover.

“Investment managers need IMI insurance for a myriad of reasons but quite simply, if an investment manager employs staff, reports to external shareholders, regulators and investors, has a compliance committee or funds under management, then they need protection that covers these key areas,” she concluded.

Related stories:
AIG and TradeIX reveal blockchain partnership
AIG declares massive restructure plans