Re/insurance broker and risk management firm Marsh has collaborated with Validus Specialty, an underwriter of professional liability solutions, to develop FINTECH Protect, a financial and professional re/insurance solution that manages the growing risks of U.S-based fintech companies.
Unlike traditional forms of re/insurance for financial and technology industries, FINTECH Protect offers comprehensive coverage against management, professional, employment, and cyber liability risks.
It also offers broad coverage for direct losses associated with theft, computer crime, extortion, data breach, and technology failure, in one simple solution.
Currently, fintech companies have to piece together full coverage from multiple policy forms and re/insurers, which often results in gaps in coverage, higher costs, and complex claims filing.
As the fintech industry grows, and regulatory pressures and cyber and privacy risks begin to present bigger challenges for companies, demand for a comprehensive insurance policy is expected to grow.
Marsh and Validus’ collaborative policy currently offers up to $10 million in primary, blended limits, and is available to privately held firms operating in the established and emerging fintech space.
Tom Orrico, Financial Institutions Practice leader for Marsh’s Financial and Professional Insurance business (FINPRO), said: “Fintech companies face increasingly complex risks from several sources, including investors, clients, regulators, competitors, and extortionists, as well as those associated with computer crime, data breaches, and technology failures.
“With FINTECH Protect, we are enabling fintech firms to manage risk early in their financing cycle, with a simplified, comprehensive, and cost-efficient insurance solution.”
Cathy Cossu, Senior Vice President of Professional Lines at Validus Specialty, added: “Traditional insurance policies do not adequately address the complex and varied risks faced by fintech firms.
“Working with Marsh, we’ve challenged industry norms by crafting an innovative and market-leading solution specifically tailored to address these complex risk management needs.”