Willis Towers Watson has launched CyFI, or “cyberinsurance and fidelity,” for financial institutions that addresses coverage gaps between cyberinsurance policies and fidelity bonds.
As financial institutions evolve in the digital age and integrate new technologies into their operations, they increase their exposure to a range of digital threats such as social engineering, theft of data and cyberterrorism.
Large financial institutions, in particular, have become targets of social engineering schemes, where criminals exploit weaknesses in human behavior in order to gain access to a company’s network or data for the purpose of causing financial harm.
CyFI bridges the gap between cyberinsurance and fidelity policies to cover the scope of losses associated with social engineering claims by providing institutions with additional capacity that sits above their insurance program’s existing attachment points for individual primary cyber and fidelity placements. Additionally, the product aims to grant definitive coverage for scenarios where gaps in coverage exist on a primary basis. Such gaps may include losses arising from social engineering; theft of confidential information; a narrow definition of computer systems; mechanical failures or errors in program designs; and cyberterrorism.
According to Anthony Dagostino, executive vice president and Cyber/E&O practice leader, FINEX, Willis Towers Watson, the company to customize the product for other industries, as social engineering is not an issue facing only financial institutions.
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