XL Group has launched a new suite of five products designed to meet the specific insurance needs of financial institutions.
The products recognise that not all financial institutions are the same and that these organisations are facing ever more complex risks. In addition, these institutions have to deal with the effects of continued uncertainty in financial and investment markets.
For the first time there is a commitment within each policy to minimum service standards, including in relation to claims handling and responsiveness, as well as a built-in confidentiality agreement. Furthermore the policies are designed to respond directly to clients’ concerns in order to provide clarity and certainty around the claims notification process.
The products are designed to provide comprehensive cover around the multitude of risks that different financial institutions face. The suite comprises the following solutions:
– Comprehensive Crime Insurance – covers companies for infidelity of employees, documentary fraud, cyber fraud, physical loss or damage, extortion, and fees and expenses, including costs relating to a data breach.
– Civil Liability Insurance – covers companies and their employees for loss, defence costs and investigation costs (including, where insurable, for breach of obligations imposed by the Bribery Act 2010), mitigation costs and regulatory crisis costs arising out of their legal liability to third parties while performing professional services.
– Directors & Officers Liability Insurance – covers individual directors and officers in respect of actual or alleged wrongful acts in their capacity as directors or officers of the company (or another board on which they serve at the request of the company), the company for reimbursement if it indemnifies those directors and officers, and the company for securities claims against it.
– Private Equity/Venture Capital Liability Insurance – covers the company (including parent company, holding companies and subsidiaries), funds and their general partners for their civil liability and directors and officers liability.
– Investment Management Insurance – covers the investment manager and the fund(s) for their civil liability, directors and officers liability, and crime.
Gerard Bloom, Chief Underwriting Officer, Financial Institutions said: “Over the last 10 years financial institutions and the financial industry have changed fundamentally. And more recently with continuing uncertainty in financial markets, this change, particularly in terms of regulation, has become even more pronounced. Financial institutions now have far greater reliance on IT infrastructure for services and distribution, and the insurance industry has generally been slow to adapt policies to these changing exposures. Our policies seek to address these issues.
“Many of the policy enhancements included in our suite of products for financial institutions have been driven by input from our clients and their brokers. We’ve deliberately kept the language clear and concise while at the same time making the coverage more relevant to the industry’s specific needs.”
