Apsley and PartnerRe to launch specialist AIFMD compliant service

The insurance provider Apsley Speciality (Apsley) has joined forces with global reinsurer PartnerRe in order to launch a specialist underwriting service for the hedge fund sector dealing with AIFM requirements. The agreement between the two parties was signed in late 2013, PartnerRe will be capacity provider for the project.

The new service aims to fill a gap in the market. Under AIFMD, which comes into force this July, hedge fund managers will have to either hold additional own funds or a professional indemnity insurance (PII) policy to prevent being sued for negligence. As the Financial Times reported earlier, a fifth of hedge fund managers in Europe still fail to comply with these new regulations.

Although many investors are already purchasing an existing PII, these may not necessarily be AIFMD compliant, investors should therefore ensure whether their current policicies provide sufficient cover in the event of a claim.

James Lawrie, who has been appointed as Executive Director, highlights: “These changes to the AIFMD will bring about new challenges and opportunities for the hedge fund industry. It’s a major development for fund managers as they’ll need to make sure they comply with the new regulations and our solution will allow them to do this.”

Lawrie has previously worked for Towers Watson and Caliburn Partners LLP and has earlier spent five years in the financial institutions insurance market. He has consequently gained experience in specialist insurances as well as the hedge fund industry. 

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