AIG to Offer Crowdfunding Investor Protection in UK and Canada

May 25, 2016

American International Group Inc. has launched a new product for the global crowdfunding investment industry. This new insurance product was developed specifically to protect investors on equity crowdfunding platforms against issuer fraud.

Crowdfunding platforms enable innovators to fund their ideas and also give retail investors the opportunity to provide capital for start-ups and growth stage companies around the world.

“Crowdfunding Fidelity” protects individual investors against the theft of issuer assets by issuer directors, officers, or general employees which cause a direct loss to the individual investor.

The new product offers crowdfunding platforms offers investors protection against issuer fraud. The new product works closely with the platforms to ensure underlying issuer trustworthiness.

The coverage is currently available to platforms in the UK and Canada. As other countries finalize regulations for companies to raise capital, this policy can be customized to local needs of equity-based crowdfunding platforms.

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