Financial Institutions Insurance
The financial crisis has resulted in a sharp increase in the number of claims by disgruntled clients against financial institutions and professionals working in the financial services sector. The Madoff scandal and the discover of other ponzi schemes, huge stock market losses suffered by financial institutions and the collapse of banks has led to enormous losses. In addition, tighter regulation and toughened resolve by regulators to ensure transparency in the markets has resulted in more regulatory investigations against financial institutions. All this activity has encouraged unhappy clients to seek redress against the financial institutions.
There are opportunities for insurers in this market but insurers need to ensure that they understand the risks involved and that the FI policy is appropriately worded and priced.
Tags: CLE, legal conferences, Legal Events
