AFL unit Zodiac launches new D&O cover

US-based managing general agent Zodiac Insurance Services, a subsidiary of Lloyd’s broker AFL Insurance Brokers, has launched a new directors and officers (D&O) capacity for the global small financial institutions (Small FI) market.

Traditionally, the Small FI market, which includes insurance captives, “desk drawer” insurers, self-funded groups, and other special purposes entities, has been placing D&O policies alongside those of larger businesses.

By creating a new Small FI offering for these risks, Zodiac aims to fill a product gap while assigning an appropriate cost and deductible structure.

Zodiac said it will partner with underwriters at Lloyd’s to harness the required insight and expertise to underwrite smaller accounts.

“We have spent a lot of time in this market, researching both professional liability, including errors and omissions (E&O), and D&O needs. We have had great success underwriting E&O for many years, and this new product really completes the circle for us," said Zodiac president David Wash.

AFL chairman Toby Esser added: “Demand for tailored products and specialty programmes is increasing in this space, and Zodiac is ahead of the curve in identifying and addressing the needs of niche markets such as Small FI. I congratulate David on this ground-breaking launch and look forward to further supporting Zodiac’s continued growth throughout 2019.”

AFL acquired a majority stake in Zodiac in September 2018.