JLT launches executive defence insurance

JLT has developed a new executive defence insurance (EDI) product, offering a two-year policy period and combining several financial lines under one limit.

The company said the offering was to fill a gap in the market for a product insuring against executive and corporate liabilities in a cost-effective way and is aimed at companies outside the FTSE 100 that may not have dedicated insurance staff.

JLT head of directors and officers Mike Lea said: “This is an innovation in the insurance market aimed at companies looking to save time and cost on their insurance renewals without compromising cover.

“By developing a product that stretches the policy period and blends personal and corporate exposures, JLT can offer competitively priced cover and better protection while making clients interaction with insurers much easier.”

In the UK, claims of this nature tend towards severity rather than frequency and so a longer term combined policy is more aligned to these risks.

In exclusive partnership with AIG Europe, EDI enables buyers to buy one policy over two years, instead of six, resulting in significant cost savings, much reduced administrative burden and better protection for directors, officers, trustees and companies.

JLT Partner Kurt Rothmann added: “The financial crisis and ongoing recessionary conditions has meant that companies are looking at every opportunity to reduce risk transfer costs, but without reducing their levels of insurance protection.  As a result, we believe that the EDI approach will resonate with a large number of FTSE companies.”