The vulnerability of financial institutions is well known and recent high profile cases have made headlines around the world. The most common threat is usually negligence, crime and regulatory issues which don’t seem to be diminishing any time soon and modern technology has increased the risks and has facilitated new forms of criminal activity. Effective operational controls can only reduce exposures but appropriate insurance products frequently prove to be a vital last line of defense.
The environment in which the investment industry operates is becoming increasingly hazardous. Complex regulatory regimes and the heightened focus on personal liability have resulted in an acute need for effective cover.
Many times, corporate and personal liability insurances are often inappropriately applied to the structures typical of the investment industry. Errors in policy construction can be catastrophic if they lead to non-response of policies.
Some inevitable risk faced by financial institutions
For protection of the corporation and its key individuals, following policy covers are needed: