Chubb has introduced a new fidelity insurance product, the Financial Institution Bond for Asset Managers, to address risks faced by today’s asset managers. The financial fidelity bond provides modernized coverage for a range of risks that can result in loss of customer capital. These types of risks often stem from fraudulent activities of employees, computer hacking and impersonation of executives, clients, and counterparties.
Chubb designed its new fidelity bond in response to the changing risks associated with advancements in technology used by advisers to manage assets. According to a 2017 PwC report on the future of the asset and wealth management industry, assets under management globally are expected to exceed $145 trillion by 2025.
“The asset management industry is growing at a rapid pace, and safeguarding customer capital is top of mind for asset managers,” said Michael Mollica, executive vice president, Chubb North America Financial Lines. “Given today’s digital environment, it has never been more critical for asset management firms to ensure they have the right coverage in place to address a range of new risks.”
Chubb’s new Financial Institution Bond for Asset Managers product provides an extra layer of protection for exposures that may not be covered under existing policies, including:
- financial loss resulting from unauthorized access to the firm’s computer systems by hackers, including the use of malware and viruses;
- unauthorized access to a firm’s network, including mobile applications and customer web portals;
- the transfer of the firm’s capital or its customers’ capital through fraudulent instructions over the Internet, email or telephone; and,
- impersonation of an employee or known vendor that causes the firm’s funds to be fraudulently transferred by an authorized employee.
Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance products.
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