Global re/insurer Chubb has introduced a new fidelity insurance solution to address the risks currently faced by asset managers.
The Financial Institution Bond for Asset Managers provides coverage for a range of risks that can result in loss of customer capital.
These risks often stem from fraudulent activities of employees, computer hacking and impersonation of executives, clients, and counterparties.
“The asset management industry is growing at a rapid pace, and safeguarding customer capital is top of mind for asset managers,” said Michael Mollica, Executive Vice President, Chubb North America Financial Lines.
“Given today’s digital environment, it has never been more critical for asset management firms to ensure they have the right coverage in place to address a range of new risks.”
According to The Financial Crimes Enforcement Network, since 2016 there have been more than $9 billion in possible losses affecting U.S. financial institutions and their customers as a result of business email compromise schemes.
Chubb’s new financial institution fidelity bond solution aims to provide an extra layer of protection for exposures that may not be covered under existing policies.
These include financial loss resulting from unauthorised access to the firm’s computer systems by hackers, including the use of malware and viruses, and unauthorised access to a firm’s network, including through mobile applications and customer web portals.
Chubb will also protect against the transfer of capital through fraudulent instructions over the Internet, email or telephone, and impersonation of an employee or known vendor that causes funds to be fraudulently transferred by an authorised employee.
