Miller Insurance Services LLP has introduced a new crime insurance policy specifically designed for US-based financial institutions (FIs), fintech firms, and financial services companies.
The policy is backed by a panel of Lloyd’s of London syndicates. The product features proprietary wording developed specifically for the financial services sector in the United States.
In addition to standard crime insurance terms, Miller said that the new product includes features that have typically not been available through domestic US markets.
These include coverage for social engineering and fraudulent impersonation up to the full policy limit, protection against extortion, including cyber-related extortion, and coverage valid in more than 80 countries. This broader geographic applicability is aimed at institutions with global operations.
Earlier this month, the independent specialist re/insurance broker also announced the appointment of three senior hires to its newly established M&A and Strategic Solutions (MASS) team.
Crime insurance is fast becoming a major necessity for US businesses and FIs to protect against losses from criminal activities such as fraud, embezzlement, and cybercrime.
In 2023, the FBI's Internet Crime Complaint Center (IC3) received 880,418 complaints, with reported losses exceeding $12.5 billion – a nearly 10% increase in complaints and a 22% rise in losses compared to 2022.
Meanwhile, a 2024 report indicated that 42% of financial institutions experienced an overall increase in fraud rates over the past 12 months. The financial sector also witnessed a resurgence in check fraud, with suspicious activity reports doubling in 2023.
Rising threats across the landscape are also challenging businesses and FIs for coverage. Criminals are increasingly using sophisticated methods, such as social engineering and cyberattacks, complicating risk assessment and underwriting for insurers.
Entities must navigate complex regulatory landscapes, ensuring compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) laws, which can impact insurance coverage terms and availability.
Many organizations also face challenges in adopting advanced fraud detection technologies due to high costs and integration complexities, potentially leaving them more vulnerable to crimes not covered under existing policies.
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