LONDON--(BUSINESS WIRE)--Leading insurer ACE European Group (ACE) (NYSE:ACE) has welcomed proposals by Brian Holden MBE that the Pensions Regulator should make Pension Trustee liability insurance mandatory. However, ACE also stresses that although this might be a useful step forward, this is no substitute for the vital education and support needs of trustees.
Emma Watkins, ACE’s Pension Trustee Liability insurance specialist said, “Our experience in this market very much supports and reflects the comments made by Mr Holden in his report.
“Having seen the impact of claims in the industry and on individual schemes and trustees in particular, we very much support the concept of making the purchase of liability insurance mandatory, with the level of insurance being appropriate to the circumstances in question.”
This proposal was part of a comprehensive review of trustees and the future of trusteeship by Mr Holden who has over 38 years involvement in the trusteeship of occupational pension schemes and is Chairman of Trustee Risk Management Ltd. Commissioned by Professional Pensions magazine, Mr Holden’s report has already been presented to James Purnell MP, Minister of State for Pensions Reform at the Department of Work and Pensions.
In response to Mr Holden’s comment on the potential subsequent reduction in premiums, Emma Watkins says:“ACE would caution trustees that this will only happen once the market has sufficiently developed, whereupon claims trends will then drive premium figures.
“I would suggest that we need to view the purchase of insurance as one tool within a trustee's risk management toolbox - it should not in any way replace the education and support required for and by trustees. By helping to manage claims, trustees can work in partnership with insurance companies to stabilise premiums.
“ACE would of course welcome the opportunity to work with the Pensions Regulator on this as suggested in the review.”
Pension Trustee Liability Insurance
ACE offers Elite Pension Trustee Liability for the areas of responsibility owed by trustees and the potential risks they face. This policy is regularly reviewed to ensure that it continues to respond to the risks faced in the changing pensions environment. The policy is written in plain language with appropriate pensions terminology.
It is vital to buy the right levels of cover for trustees when litigation is an ever present threat. Elite Pension Trustee Liability from ACE provides cost effective protection for the assets of individual trustees, the pension scheme, the sponsoring employer and their employees.
ACE’s policy provides financial protection against a range of allegations including:
ACE European Group has established branch offices in 16 countries across Europe, Freedom of Services permissions to operate in 27 EEA countries and affiliate offices in Egypt, Bahrain and Pakistan.
ACE European Group comprises the operations of ACE Europe, ACE Global Markets and ACE Tempest Re Group. ACE Europe provides a range of tailored Property and Casualty, Accident and Health and Personal Lines solutions for a diverse range of clients. ACE Global Markets (AGM) is ACE’s specialty international business, underwriting through ACE’s Lloyd’s Syndicate 2488 and UK registered company ACE European Group Limited. Specialty lines include excess and surplus lines business, Marine, Aviation, Energy and Political Risk as well as Property, Financial Lines and Accident and Health. Additional information on ACE European Group can be found at www.aceeuropeangroup.com.
The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE: ACE), a component of the Standard & Poor’s 500 stock index, the ACE Group conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. Additional information can be found at: www.acelimited.com