WHITEHOUSE STATION, N.J., Dec. 17, 2019 /PRNewswire/ — Chubb (CB) has introduced a new fidelity insurance solution, the Financial Institution Bond for Asset Managers, to address the unique range of risks faced by today’s asset managers. This new 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 (CB) 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.”
According to The Financial Crimes Enforcement Network, since 2016, there have been more than $9 billion in possible losses affecting U.S. financial institutions and their customers as a result of business email compromise schemes
Chubb’s (CB) new Financial Institution Bond for Asset Managers solution provides an extra layer of protection for exposures that may not be covered under existing policies, including: