Insurers told Madoff fallout may cost them dear

Jardine Lloyd Thompson (JLT) has warned that Bernard Madoff's alleged £32bn fraud could potentially have a huge impact on the insurance market.

Paul Towler, a partner at JLT, said: "The litigious environment that prevails means it's 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.