New JLT Investment Management Cost & Volatility Analysis Model Is Unprecedented In The Industry

  • JLT continues to enhance its modelling capabilities.

NEW YORK, Nov. 17, 2016 (GLOBE NEWSWIRE) -- JLT Specialty USA, a U.S. subsidiary of Jardine Lloyd Thompson Group plc. (JLT), one of the world's leading specialty-focused providers of insurance, reinsurance and employee benefits related advice, brokerage and associated services, today launches its proprietary Investment Management Cost & Volatility Analysis (CVA) Model developed by JLT's Analytics and Consulting Practice to help asset managers precisely select D&O / E&O insurance limits.

Traditional methods of assessing insurance needs are inadequate, and go against the data-driven nature of investment managers.  For the first time, JLT's CVA model allows their experienced brokerage and claims teams to identify a firm's true risks and exposures, and not someone else's. As a result, Investment Managers can now compare different insurance programs to determine which is superior at protecting against volatile events and on an average costs basis.

JLT's pioneering new model provides insight into where recently paid D&O/E&O claims have come from and where they may go given increasing regulatory scrutiny and litigation. The model is unprecedented in the industry because it is the only model built on actual claims and loss history from nearly 10,000 investment management D&O/E&O policies. Five leading investment management D&O/E&O insurance carriers provided data to support model construction, which goes back to 2009.

"We are pleased to offer this unique investment manager CVA model, which quantifies the specific D&O/E&O risks that are relevant to the investment manager community," said Mike Giacobbe, Head of JLT's Analytics and Consulting practice.  "By partnering with markets and leveraging our specialist expertise, we have developed the first tool of its kind based on data and experience to accurately evaluate the appropriate limits and retentions for our clients in this space."

"We are pleased to bring this new modelling tool to the investment management industry because for the first time our clients can utilize similar data and analytics to drive purchasing decisions.  We help our clients construct D&O/E&O insurance solutions that are more appropriate for their firm's risks and exposures rather than just relying on peer benchmarking data," added Ryan Farnsworth, Vice President at JLT Specialty USA.