A focus on generating consistent returns coupled with a strong risk management framework is critical for emerging managers to stand out in the market. Addressing risk exposures through appropriate insurance policies is vital amid the evolving regulatory environment, says David Turner (pictured), Vice President, Alliant Financial Institutions.
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A focus on generating consistent returns coupled with a strong risk management framework is critical for emerging managers to stand out in the market. Addressing risk exposures through appropriate insurance policies is vital amid the evolving regulatory environment, says David Turner, Vice President, Alliant Financial Institutions.
What are some of the biggest challenges your firm is facing in the current environment, and how are you overcoming them?
One of the key challenges in the insurance industry is for brokers to identify clients’ unique exposures and align insurance policies to address the risk exposures in their operations. As the largest specialty insurance broker, Alliant acts as an extension of our clients’ risk management teams. We sit on the same side of the table as our clients and resolutely serve as an effective insurance representative in the marketplace. Alliant leverages our strong carrier relationships to deliver value to our clients. Our superior technical expertise ensures that policy language is precisely tailored to meet the specific needs of clients with a clear focus on contract certainty in the event of a claim.
What three key pieces of advice do you have for emerging hedge fund managers seeking to differentiate themselves in a crowded market?
Emerging hedge fund managers should employ a range of strategies to differentiate themselves and enhance their appeal in a crowded market. These include: (i) implementing a robust risk management framework with a strong culture of compliance, especially in an active regulatory environment that is not expected to slow in the near future; (ii) a hyper-focus on consistent and competitive returns along with the option of a performance-based fee structure, which is attractive to investors; and (iii) specialising in a specific investment strategy (the riches are in the niches) to appeal to investors seeking managers with expertise in dedicated market segments. A combination of these three strategies can help differentiate emerging hedge fund managers in a highly competitive landscape.
What is your view on the current regulatory environment for hedge funds, and how are you ensuring compliance?
Hedge fund managers continue to face an evolving and heightened regulatory environment as demonstrated by the SEC’s recently proposed rules, including the potential limitation on indemnification of fund advisers. Insurance becomes especially important in this context. In the absence of fund indemnification, insurance may need to step in sooner and serve as a crucial risk management tool for advisers. Robust coverage with adequate policy limits becomes even more critical in such cases. Our brokerage and claims teams continue to focus on providing contract certainty for clients by negotiating and securing broad coverage for regulatory investigations with limited policy exclusions.
With increased competition for talent, how are you attracting and retaining the best experts at your firm?
Alliant is majority-owned by its employees and maintains a flat management structure, which enables employees to contribute directly to the company’s overall success. Employees are given the freedom and resources necessary to drive exceptional results for both clients and the company. Alliant recognises the significance of this approach, where employees go beyond the simple offering of standardised insurance products. Instead, we are a specialty broker, dedicated to the industries we serve, and we adopt a consultative approach and develop a deeper understanding of clients’ unique circumstances and risks to provide meaningful solutions. Our employee retention is far above average, and we enjoy being the best at what we do for our clients. It’s a rewarding place to work!
With the increased focus on diversity and inclusion in the financial industry, what steps are you taking to ensure your firm is a diverse and inclusive workplace?
Alliant’s focus on its employees, which encompasses diversity and inclusion priorities, is a key factor in attracting industry-leading talent. Talented individuals are drawn to Alliant because we are a “client-first” organisation that prioritises the interests of clients and employees rather than external shareholders. Alliant’s commitment to diversity and inclusion is evident in our workforce demographics: Minorities represent 25.5% of the Alliant workforce, and the executive management team consists of 54% female, 14% minority and 2% veteran individuals. Additionally, Alliant’s CEO, Tom Corbett, has pledged his support of the CEO Action for Diversity & Inclusion (CEOAction.com), the largest CEO-driven commitment to diversity and inclusion. It feels affirming to be at a firm that is committed to the goal of achieving a fully diverse and inclusive workplace.
David Turner, Vice President Financial Institutions Group, Alliant – Based in New York City, David focuses on business development and the delivery of comprehensive insurance and risk management solutions for financial institutions, including hedge funds, private equity firms and insurance companies. When he is not helping companies make better-informed insurance decisions, David can likely be found on a tennis court or exploring a new restaurant in the East Village of NYC, where he resides with his wife and two children.
