The fintech sector has increasingly become a prime target for cybercrime, with U.S. government reports underscoring the sector’s vulnerability due to its heavy reliance on technology and interconnected systems. The Government Accountability Office (GAO) highlights that cyberattacks on financial institutions, including fintechs, have escalated in sophistication, posing significant risks to the industry’s stability. In light of these threats, the Federal Deposit Insurance Corporation (FDIC) has stressed the importance of enhancing cybersecurity measures to protect against these evolving dangers. This backdrop of heightened cyber risks underscores the urgent need for robust protection mechanisms within the fintech industry.
In response to the growing cybersecurity threats facing the fintech sector, Markel, the insurance division of Markel Group Inc., has introduced its new FintechRisk+ insurance policy. This policy is designed to provide enhanced cyber protection and support services for fintech companies navigating an increasingly complex and dangerous market. Markel’s move reinforces its commitment to delivering top-tier coverage and service solutions for UK and international fintech firms.
FintechRisk+
The FintechRisk+ policy offers comprehensive financial services and technology liability, directors and officers (D&O) liability, theft, and cyber protection, with coverage limits reaching up to USD $20 million. It introduces several new cyber coverage extensions, such as betterment, crypto jacking, reward coverage, and telecom fraud, alongside enhanced business interruption (BI) coverage.
UK-based policyholders gain additional benefits, including unlimited access to Markel’s Tax and Legal advisory services. This package features a 24/7 helpline for business and employment matters, debt recovery support, contract reviews, and assistance with grants, funding, and R&D tax relief consultancy. Furthermore, insureds can utilize Markel’s eRisk Hub, which provides online cyber training and a cyber risk management toolkit to help manage their exposure to risks effectively.
Nick Rugg, Head of Fintech and Investment Management Insurance at Markel, emphasized the evolving nature of risks in the cyber and fintech sectors since the launch of Markel’s original Fintech policy eight years ago. He noted the significant threat posed by ransomware, which has resulted in substantial financial losses for businesses.
Rugg stated, “It’s more important than ever for businesses to have insurance providers who serve as trusted, long-term risk management partners.” Markel’s latest offering reflects its strategy to enhance insurance coverage and value-added services backed by claims service and underwriting.
Source: Markel launches FintechRisk+ to offer enhanced cyber coverage and support services for fintechs.
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