$50bn fraud could hit insurance hard

Paul Towler, partner at JLT, said: "The litigious environment that prevails means that its inevitable that financial institutions who invested clients' assets in Madoff's funds will face actions from disgruntled clients seeking to recover lost monies.

"The likely focus of clients will be the level of due diligence performed by the financial institutions. A range of insurance cover is available to protect firms and their clients from incidents such as this; however, the worry is whether they have