Berkshire Enters Fiduciary Liability Insurance Market
Berkshire’s entry into the fiduciary liability market is a logical extension of its specialty insurance business and Berkshire’s overall insurance operations. Ajit Jain formed Berkshire Hathaway Specialty Insurance (BHSI) in June, 2013 and thereby took Berkshire into commercial insurance. BHSI is led by Peter Eastwood, a highly regarded insurance underwriter, and is expected to be generating volume in the billions within a few years. Berkshire has both a large amount of capital and an excellent reputation. They have the ability to underwrite more intelligently than most, with bigger risks, and costs below average.
I am quoted in the Omaha World-Herald (July 29, 2014):
“Berkshire’s entry into the fiduciary liability market is a logical extension of its specialty insurance business and Berkshire’s overall insurance operations,” said David Kass, a business professor at the University of Maryland, who is also a Berkshire Hathaway shareholder and brings student groups to Omaha to meet Warren Buffett, chairman and CEO.
Berkshire officials “have the ability to underwrite more intelligently than most, with bigger risks, and costs below average,” Kass said.
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