Markets/Coverages: Inigo Provides Excess DIC/DIL Cover on Financial Fraud Policies

Inigo Ltd., the Lloyd’s specialty insurer, has launched a product that provides top-up cover on financial fraud policies.

The product, called Inigo Crime Excess, is an excess DIC/DIL (difference in conditions and difference in limits) policy designed to sit excess of traditional U.S. bond policies, providing top-up cover for standard crime clauses, while dropping down to cover social engineering fraud losses and digital asset losses from the primary or in excess of any sub-limits already provided for.

This launch responds to the growing threat of social engineering fraud, a form of fraud that manipulates individuals into revealing sensitive information or to perform actions that compromise security.

According to the UK government’s Cyber Security Breaches Survey 2024, 58% of large businesses have experienced a cyber-attack in the last 12 months, with phishing being the most common, at 84% of cases.

AI has significantly expanded the threat landscape, enhancing the realism and scale of social engineering attacks, with new key risks including the automation of phishing campaigns, the use of AI-generated media to bypass security, and the exploitation of vast data sets to tailor attacks to specific targets.

While many more businesses are taking out cyber insurance, there is clear need for more appropriate types of insurance to cover the changing nature of financial crime, which has been traditionally served by U.S. bond policies.

Inigo said the benefits of this new product include:

• DIC/DIL excess layer with broader cover to include social engineering fraud cover for the full layer limit
• Social engineering cover is untested/unverified
• Optional inclusion of digital asset loss
• Allows the insured to retain consistency of primary carrier
• Market leading claims handling
• Insured is able to keep their existing bond forms without having to take on a completely new policy wording
• Lloyd’s security and capacity carrying financial strength of AA-
• Lloyd’s licensing provides cover in over 200 territories worldwide. (Editor’s note: With Lloyd’s global licensing, Inigo is able to offer the product globally).

“With the rise in cybercrime, particularly AI-driven social engineering fraud, many business leaders are rightly concerned. However, traditional coverage in the US often falls short of addressing these evolving risks,” commented Tom Falkner, underwriter.

“To bridge this gap, we’ve developed a flexible, complementary solution that enhances protection against emerging financial fraud and digital asset loss, which can work seamlessly alongside existing policies,” he added.

Source: Inigo Ltd.

Topics Fraud Excess Surplus