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Article: Hedge fund heyday: explosive growth in the number of hedge funds, coupled with increased regulatory scrutiny, has led to this niche market increasing its demand for insurance.(Reinsurance/Capital Markets)
- Article from:
- Best's Review
- Article date:
- October 1, 2005
- Author:
CopyrightCOPYRIGHT 2005 A.M. Best Company, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Key Points
* The number of hedge funds is growing by 20% annually, increasing the demand for directors and officers and errors and omissions insurance.
* Regulators are considering stepping up oversight of hedge funds, which also could increase their demand for insurance.
* Only about 30% of hedge funds purchase D&O or E&O coverage today.
Hedge funds march to a different drummer, boldly seeking out unusual investment strategies for their sophisticated, high-net-worth clients.
Yet, faced with additional regulatory scrutiny, these lords of alternative investments are turning to a traditional risk management ...