Context
A Transactional Liability Committee has been established with senior underwriting participants from IUA member firms active in the the warranty and indemnity insurance class of business. Twenty different companies were represented at its first meeting. Warranty and indemnity insurance is applied in mergers and acquisitions to protect against losses arising due to warranties made in the acquisition agreement.
Key points to note and next actions
Chris Jones, IUA Director of Legal, Underwriting and Claims, said: “In recent years the warranty and indemnity sector in the London company market has grown and there is now a significant community of practitioners providing cover. Our new committee will provide a useful forum for networking opportunities and sharing of best practice. The group will also investigate research projects and represent member interests. Some of the issues it may address include the standardisation of non-disclosure agreements, good practice for meeting Know Your Customer rules and thematic loss trends.”