Chubb unveils financial institution bond for asset managers
Chubb has introduced a new fidelity insurance offering called the financial institution bond for asset managers, designed to help money managers address the unique risks they face.
The financial institution bond provides coverage for risks that can result in loss of customer capital, from fraudulent employee activities to computer hacking and impersonation of executives, clients and counterparties. It recognises the changing risks associated with advancements in technology used by advisers to manage assets.
According to a 2017 report by PwC, global assets under management are set to exceed $145 trillion by 2025. Michael Mollica, executive vice president for Chubb North America financial lines, noted this rapid growth makes safeguarding customer capital vitally important.
"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,” she added.
The Financial Crimes Enforcement Network says there have been more than $9 billion in possible losses affecting US financial institutions and their customers as a result of business email compromise schemes since 2016.