Scandals make premiums soar


Recent hedge fund scandals, poor performance and the general malaise of the insurance market have sent premiums for liability insurance and other types of cover required by hedge funds skyrocketing. Such is the negative view of hedge funds that many insurers simply won't touch the risk anymore.

Those insurers that are still willing to underwrite hedge fund risk are also dramatically cutting back the types of cover they offer and are pushing up the premiums. Even service providers are seeing their premiums spiral upwards simply because they declare that they act for hedge funds, which immediately taints them in