Insured losses from Madoff Ponzi scheme

Aon Benfield has released a preliminary forecast of direct insured losses resulting from the alleged Bernard Madoff Ponzi scheme. “While the maximum potential exposed insurance limits are estimated to be over $6bn, the range of direct insured losses will be a far smaller number, most likely somewhere between $760mn and $3.8bn, with a best estimate of $1.8bn,” said Stephen Mildenhall, head of Aon Benfield’s Actuarial and Enterprise Risk Management practice. “These figures represent material costs, but are not likely to have a significant impact on the insurance industry.”