Allianz Lanka sets up D and O specialised unit

Allianz Insurance Lanka Ltd. has launched a new business unit to provide Directors and Officers’ (D and O) liability insurance to private and public corporates.

The launch of the new business unit comes in the wake of several new non-life policies launched recently.

The parent company Allianz SE’s AA credit rating, financial strength, global capabilities and prominent brand make it a strong D and O insurance choice from the outset.

The new unit is managed by D. De Silva, who received specialised training in this area, at Allianz Reinsurance Asia Pacific, the Allianz Singapore office, which is the main reinsurance hub for the region.

Ms De Silva has extensive experience in non-life insurance, having worked several years in a technical capacity in the Middle East. “Unlike typical D and O underwriting operations in this country, we have a tremendous advantage in providing D and O coverage to corporates.

We are able to deliver a complete service and have consolidated operations and underwriting authority with our regional offices, which enables us to function as a ‘one stop shop’ with responsiveness and efficient, speedy delivery. This enables our clients to obtain the entire cover directly from us, at more competitive terms,” she explained.

Increasing corporate governance and regulatory surveillance is placing greater pressure on company directors and officers to perform meticulously. In recent years, Directors and Officers liability insurance has become a core component of corporate insurance. As many as 95 per cent of Fortune 500 companies maintain Directors and Officers (“D and O”) Liability insurance today.

D and O liability insurance is also becoming increasingly important for Sri Lankan companies now, due to the implementation of the New Companies Act 2007, which clearly outlines the duties and responsibilities of a Director or Officer and also sets out the repercussions of breaching such duties.

“Directors and officers worldwide make decisions every day, which have far-reaching consequences. They face increasing exposure to personal liability, which directly affects their professional reputation and personal assets.

Personal liability exposure for directors of public companies is greater than ever in the light of the recently enacted legislation. With D and O Insurance, Allianz Lanka provides a solution to protect them from exposure resulting from their professional performance.

Allianz’s corporate might and global reach make our D and O product very attractive to the Sri Lankan market,” said D. De Silva The Allianz Director’s and Officer’s Liability cover insures past, present and future Directors, Officers and employees in a managerial/supervisory capacity of a Company and its subsidiaries against any wrongful acts committed, such as the breach of fiduciary duties after exercising due care and diligence.

The insured are indemnified for defense costs and any legal claims. A comprehensive Allianz D and O cover assists a company in attracting and retaining directors. Directors and Officers Liability Insurance provides financial protection to the directors and officers of a company, and covers damages or defense costs in the event they are sued for wrongful acts while working for that company.

Directors and Officers can be held responsible for a range of issues including health and safety, data protection, maintaining satisfactory accounts, fraud and negligence, harassment and discrimination suits.

Implication of wrongful acts could lead to imprisonment, loss of reputation and even loss of personal assets of Directors/Officers. Typical sources of claims include shareholders, shareholder-derivative actions, clients. regulators and competitors (for anti-trust or unfair trade practice allegations) and even employees.

Allianz Insurance Lanka provides commercial insurance to large public and private companies and individuals, and will launch its Life insurance arm as well, very shortly.

It is a fully owned subsidiary of Munich headquartered conglomerate Allianz, one of the leading global financial service providers, which offers a range of financial and insurance products to its 60 million clients in over 70 countries and has assets under management of approximately US $1.25 trillion.