CFC, the specialist insurance provider, pioneer in emerging risk and market leader in cyber, announced today the launch of a new free guide to FinTech insurance. Designed to help brokers learn more about this fast growing industry sector and understand why it needs bespoke insurance cover, CFC’s guide includes an overview of the key exposures for companies operating in the FinTech space and claims examples to demonstrate how bespoke cover actually responds.
“Technology is becoming an increasingly integral part of the global financial infrastructure. Because of this, FinTech businesses have a unique combination of exposures that don’t fit the typical financial institution,” says Neil Beaton, Financial Institutions Practice Leader at CFC. “Like many emerging businesses at the intersection of technology and industry, FinTech businesses aren’t likely to find all of their exposures covered in a single policy.”
Key exposures for FinTech companies include:
· Theft of funds: high volumes of payments, transactions and customer accounts as well as the growth and implementation of new technology leaves FinTech companies vulnerable to theft
· Cyber event: given the nature of their operations, FinTech businesses are prime targets for cyber criminals
· Professional liability: while negligent advice and failings in client service are common risks for financial services companies, FinTech firms often rely on third-party contractors creating an extra liability risk
Beaton concludes: “As the FinTech landscape continues to evolve, brokers play an important role in advising clients on these emerging risks and the potential gaps in standard insurance policies. Hopefully our guide will provide a valuable resource and help ensure they can source policies that are tailored to the unique needs of their FinTech clients.”
For more information please read: CFC’s introduction to FinTech insurance
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