Specialist insurance provider CFC has launched its first insurance offering for financial institutions. The company’s Investment Management Insurance (IMI) policy is the first in a suite of products designed to address the risks faced by investment managers.
IMI combines the traditional cover that investment managers require with cover for emerging risks like cyber and kidnap and ransom, the company said.
Cover is provided for management liability, professional liability, crime, and regulatory investigations. Cyber coverage can be added on to protect against the financial impact of privacy and cybercrime events, CFC said. Additional D&O limits are available for non-executive directors.
IMI offers global coverage as standard, so companies are covered for claims made anywhere in the world.
“Financial institutions are not only changing how they do business by utilizing technology in new and different ways, they’re also subject to significant regulatory burden and an increasing threat of cybercrime,” said Neal Beaton, CFC financial institutions practice leader. “The insurance market has failed to adapt to these new exposures, so CFC is developing a modern, relevant suite of products that cater to the emerging risks that financial institutions face today. We saw a clear gap in the market for a comprehensive product addressing the need for protection against emerging, complex risks in the investment management space. Being able to offer a fully blended policy reduces gaps and overlaps in cover.”
The IMI product is suitable for hedge funds, long-only equity funds, private equity and venture capitalists, REITs and other property (UK) and real estate (US) funds and registered investment advisors, CFC said. The product provides investment managers and financial institutions with a maximum liability limit of $10 million, minimum policy premiums start at $10,000.
