A major insurer has substantially beefed up its cover for financial institution leaders, adding even kidnap, ransom and extortion (KRE) insurance to the mix.
AIG has released its Gold Complete 2014 policy, its broadest cover Directors and Officers (D&O) cover for financial institutions, after a three-year analysis around the Australian claims environment.
Liliana Uhrik, Australasian Financial Institutions Manager for AIG Financial Lines, says financial institutions are facing a greater degree of scrutiny since the global financial crisis, along with a harsher legal regime.
“After discussion with our financial institution clients and their advisers, and in light of our extensive analysis, we recognised that financial institutions now, more than ever, need comprehensive insurance to attract, retain and protect their business leaders,” she says.
“In the wake of the deluge of claims arising from the global financial crisis, the Australian insurance market has been reticent to provide the breadth of cover required in this difficult legal environment for this sector.
The decision to include KRE cover is a reflection of a growing trend of extortion of high-profile executives across Asia Pacific.