Extending PFI cover

Europe

The funding of large long term projects which are financed by a combination of private sector and public sector finance are necessarily complex and difficult to put in place and to manage for their average life time of around 25 to 30 years. There were around 794 of these Private Finance Initiative (PFI) projects with a combined capital value of just under £55.0bn on the go as at December 2006. Not surprisingly, according to Alistair Macintyre, Product Development Manager for insurer Ace UK & Ireland, the insurance solutions for these contracts are equally complex. The company has just launched a comprehensive policy specifically targeted at PFI policies. The new policy, Mr Macintyre noted, combined Ace’s expertise in key PFI areas, such as construction, with other key lines including marine and environmental liability. Importantly, the policy offered brokers and project managers the option of using a single insurance provider. The company believed that the combination of these covers, particularly environmental impairment/pollution and marine, filled current gaps in provision. PFI contracts often involve very large values and consequently require significant capacity. Mr Macintyre said.