CFC launches first insurance offering for financial institutions
Comprehensive policy for investment managers extends traditional cover to include cyber and kidnap and ransom.
Specialist insurance provider, CFC, has launched its first insurance solution for financial institutions. CFC’s Investment Management Insurance (IMI) policy is the first in a suite of products designed to address the challenging risk environment faced by investment managers.
Combining its heritage in cyber and technology insurance with expertise in financial institutions, CFC’s IMI product knits together the traditional cover that investment managers require with comprehensive cover for emerging risks including cyber and kidnap and ransom, into a single policy.
Cover is provided for management liability, professional liability, crime, and regulatory investigations, and cyber coverage can be easily added on to protect against the financial impact caused by privacy and cyber-crime events. Should they need it, policyholders also have access to CFC’s industry-leading incident response team. Additional D&O limits are available for non-executive directors.
The IMI policy also offers global coverage as standard, so that companies are covered for claims made anywhere in the world, not just in a single territory.
Neil Beaton, Financial Institutions Practice Leader at CFC, said, “Financial institutions are not only changing how they do business by utilizing technology in new and different ways, they’re also subject to significant regulatory burden and an increasing threat of cybercrime,” he added. “The insurance market has failed to adapt to these new exposures, so CFC is developing a modern, relevant suite of products that cater to the emerging risks that financial institutions face today. We saw a clear gap in the market for a comprehensive product addressing the need for protection against emerging, complex risks in the investment management space. Being able to offer a fully-blended policy reduces gaps and overlaps in cover.”
CFC’s IMI product is suitable for hedge funds, long-only equity funds, private equity and venture capitalists, REITs and other property (UK) and real estate (US) funds as well as registered investment advisors. It provides investment managers and financial institutions with a maximum liability limit of $10,000,000 and minimum policy premiums start at $10,000.
CFC announced the creation of its financial institutions practice led by Neil Beaton in November 2017. Beaton was recently joined by veteran financial institutions and cyber underwriter Josephine Tam, most recently of JLT Speciality and Axis Insurance in New York.