With each passing day, cyber crime becomes more and more prevalent. More and more customers use their phones and computers to transfer funds and pay bills. As financial institutions modernize to provide more convenient services for their clients, they find themselves as targets for internet crime. With data loss and information theft as increasing concerns, companies are looking for the best ways to mitigate risk and insurance brokers are rising to the challenge. Financial institutions can look towards experienced companies to provide them with coverage in case of traditional and more modern threats. Effective plans will incorporate more conventional coverage like E&O claims, non-compliance violations and derivative claims with coverage against data incursion events.
The three newest threats financial institutions face are from data destruction, information theft, and phishing. Having private data erased is problematic in and of itself, but having it stolen is even more harmful. Costs associated with tracking down and repairing damage to clients’ personal and financial information can be catastrophic. In addition, phishing attacks against clients and institutions themselves can prove hazardous. In an environment where a single email can branch out to hundreds of contacts, it becomes increasingly important to safeguard assets from attack. Brokers with an eye on cyber risk and insurance plans tailored towards such technological intrusions help safeguard financial institutions from claims-related disaster.