In this episode of the SBAI podcast, Brian Digney sits down with Mike Butcher, Head Underwriter for Europe and Financial Institutions Underwriter at K2 International to explore the specialised insurance policies available for asset managers. The discussion covers key areas of coverage, including directors and officers, errors and omissions, crime, cyber, and employment practices liability, and highlights how these policies protect both firms and individuals.
Mike explains the importance of understanding coverage limits, insurer expertise, and claims handling when selecting policies. The discussion takes a deep dive into trade error insurance, detailing how managers can proactively correct mistakes and still recover costs through mitigation clauses. They also examine regulatory investigations, the growing risks posed by cyber threats and AI (such as deepfakes and “AI-washing”), and the rise of employment-related claims in financial firms.
Throughout, Mike emphasises best practices: notifying insurers promptly, reviewing contract clauses carefully, documenting HR policies, and engaging with insurers who understand the asset management business. The episode provides practical insights to help managers strengthen resilience, safeguard investors, and build long-term partnerships with their insurers.
About the SBAI:
We are an active alliance of asset managers and allocators dedicated to responsible practice, partnership, and knowledge. We do this by setting Standards, providing industry guidance, and facilitating collaboration and exchange of ideas through our community of over 250 institutional investors and asset manager signatories responsible for approximately US$ 11tn in assets.
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