Broker innovates to try to cover uninsured exposures

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Willis has unveiled a new banking-style derivative product at Airmic 2012 that was being talked about as a ‘black hole for toxic risks’.

Corporate clients looking for protection against exposures for which there is no traditional insurance product were intrigued by the new policy.

Limits could be set at up to £1bn, with pricing potentially at a low single digit percentage of the limit.

Willis is working with several banks to provide the financed risk product. The closest similar type of product on the market at the moment is a cat bond.

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