Taussig Capital Announces a New D&O Insurance Initiative for SPACs

Business Wire

SAN JUAN, Puerto Rico--(BUSINESS WIRE)--
Taussig Capital announces a new initiative for Directors and Officers (D&O) insurance for Special Purpose Acquisition Companies (SPACs).

According to Joseph Taussig, “We have seen the premiums for D&O insurance for some SPACs increase more than 10-fold in the last year and those premiums can be as much as 50% of the expected expenses of the SPAC prior to an acquisition. We have analyzed this situation and have concluded that this is a serious mispricing of risk. As such, we have written a white paper detailing different solutions for SPACs looking to lower D&O insurance premiums, lower deductibles, and/or access higher policy limits than the current markets offer. Furthermore, we have identified various ways for sponsors to participate in the underwriting profits that may result from these solutions when there are no losses against a policy.”

Taussig further added, “We are planning to build the infrastructure capable of benefitting the entire panoply of SPACs as outlined in the white paper. In the meantime, we have a facility that can immediately benefit sponsors of multiple SPACs and are already in discussions with some of them.”

About Taussig Capital

For more than two decades, Taussig Capital has been an innovative leader in the insurance industry through its total return reinsurance startups and the securitization of casualty risks through another of its startups. These pioneering approaches to risk management and the ability to bring alternative sources of capital, allows Taussig Capital’s clients to deliver custom solutions and attractive investment returns to both purchasers and providers of insurance and reinsurance.

For more information visit www.taussigcapital.com.