The individual assets of pension fund trustees' need greater protection, according to ACE European Group.

It believes many trustees face unnecessary risks through the focus on liability insurance cover for the company rather than the trustee themselves.

The Pension Act 2004 has already created a heightened risk that trustees may breach the increasingly complex responsibilities they face and consequently find their personal assets at risk. Some markets have removed forward cover for trustees where the sponsoring employer merges or is acquired or where the fund goes into run-off. The additional exposures this creates place an unacceptable burden on trustees.

Speaking at the launch of ACE Elite, a portfolio of liability products designed to provide more relevant and appropriate protection in addressing the increased exposure of individuals and their personal assets, Emma Watkins, Pension Trustee Liability specialist and product manager at ACE said: "PTL insurance offers wide cover for the individual, sponsoring employer and the pension scheme itself.

However, there is a risk that when insurers focus on providing cover for the company this can divert protection away from the individual, therefore exposing trustees to unnecessary risk.

"ACE Elite PTL adopts a more direct approach and backed up by our robust underwriting and pricing strategy, we aim to redress the balance for trustees."