Chubb Introduces First-of-Its-Kind Financial Institution Fidelity Bond to Address Unique Risks Faced by Asset Managers

New financial fidelity insurance solution provides modernized coverage for a range of risks related to loss of customer capital

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Chubb

Dec 17, 2019, 10:30 ET

WHITEHOUSE STATION, N.J., Dec. 17, 2019 /PRNewswire/ -- Chubb 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 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 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:

financial loss resulting from unauthorized access to the firm's computer systems by hackers, including the use of malware and viruses;
unauthorized access to a firm's network, including mobile applications and customer web portals;
the transfer of the firm's capital or its customers' capital through fraudulent instructions over the Internet, email or telephone; and,
impersonation of an employee or known vendor that causes the firm's funds to be fraudulently transferred by an authorized employee.

For more information about Chubb's Financial Institution Bond for Asset Managers, contact your local Chubb agent or broker.

About Chubb
Chubb is the world's largest publicly traded property and casualty insurance company. With operations in 54 countries and territories, Chubb provides commercial and personal property and casualty insurance, personal accident and supplemental health insurance, reinsurance and life insurance to a diverse group of clients. As an underwriting company, we assess, assume and manage risk with insight and discipline. We service and pay our claims fairly and promptly. The company is also defined by its extensive product and service offerings, broad distribution capabilities, exceptional financial strength and local operations globally. Parent company Chubb Limited is listed on the New York Stock Exchange (NYSE: CB) and is a component of the S&P 500 index. Chubb maintains executive offices in Zurich, New York, London, Paris and other locations, and employs more than 30,000 people worldwide. Additional information can be found at: chubb.com.

SOURCE Chubb