Whether you operate a start-up or a mature business, we can help identify affordable FinTech insurance that meets your needs. The financial technology space can be challenging for insurers, therefore it's best you work with a specialist broker.
As a Willis Towers Watson Network Broker, we work with the leading FinTech insurance companies to identify covers such as, professional indemnity (E&O), directors and officers, cyber insurance, crime insurance, and office insurance. Start the process by arranging a call with one of our expert brokers.
FinTech insurance is a selection of covers that offer financial protection against unexpected events, purchased by businesses that use technology to support or enable financial services.
Typically, the covers purchased will include professional indemnity, cyber insurance, directors and officers, crime insurance, and office insurance. Additional covers may include keyperson insurance and business travel insurance.
We work with several insurers which can consider offering insurance protection to fintech’s. We’ve put together the below expert guide to identify what covers are typically purchased, what protection they can offer and some of the challenges.
The purchase of FinTech insurance is best utilised to cover high severity and low frequency events. B2C FinTech models can make obtaining professional indemnity cover challenging for innovative business models, unless the insurer has sufficient claims experience within the financial sector you operate.
Otherwise known as professional liability, or E&O insurance, the policy cover can offer protection for against claims for negligence.
Helps offer financial protection from a criminal or fraudulent taking, obtaining or appropriation of money, securities or property.
Professional indemnity (otherwise known as Tech E&O) can offer financial protection against claims made by your clients if your FinTech services or products fail causing them a financial loss.
D&O Insurance provides financial protection to the senior individuals whilst acting in a managerial capacity. Shareholders may request the cover is purchased as a prerequisite to a funding round.
Cyber insurance protection offer cover for both 1st party expenses you would incur, and 3rd party liabilities due to a breach of security or privacy. FinTech's may potentially hold a significant amount of personally identifiable information.
Intellectual Property insurance provides cover against the legal costs from pursuing infringement or theft of Intellectual property against others or the legal defence costs for your business if accused of IP infringement or theft.
Commercial crime insurance can provide protection from financial losses related to business-related crime, including theft by employees, forgery, robbery, and electronic crime.
Key Person insurance can be arranged to offer protection against major financial harm incurred due to a significant employee passing away or becoming ill.
In a rapidly changing environment, regulations are constantly evolving. Failure to comply with regulations can have serious consequences for both the FinTech and the individuals involved with the business.
Directors’ and officers’ insurance is a key protection purchased by the company for the senior individuals making decisions, as individuals can be held personally liable from claims arising from a variety of sources, including shareholders, regulators, creditors, and employees.
Without a trading history and the stability offered by a stable cash flow, makes identifying startup FinTech D&O difficult. Evidence of a business plan, complete proposal form and cash flow forecast will be required to secure the cover.
We work with a wide range of FinTechs operating in specific niches of the financial services market. Over the years we have developed a specialism in insurtechs, payment gateways / processors and regtech. The driving force behind arranging policy cover will typically be risk mitigation, contractual requirements, or regulatory requirements.
Otherwise known as insurance technology, combines the use of technology and data with offering a service within the insurance sector.
Payment gateways or services will process high volumes of sensitive data that could be stolen and used for fraudulent purposes.
Otherwise known as regulation technology, combines the use of technology and compliance / regulation to create efficiencies.
With a common reliance on networks, systems, data, cloud technology, and outsourced service providers, means that FinTech companies and their directors are exposed to a wide range of financial risks. Mitigating those risks, as well as meeting regulatory and contractual requirements is vitally important.
Regulatory business plans, risk management processes, cyber security controls, group structure chart, financial projections, cash flow forecasts, are commonly requested to demonstrate your risk adverse nature and competence.
The process can take a couple of weeks to solicit quotes, once we obtain adequate information for insurers to underwrite your risk exposure. There may be further questions asked, and potentially a call with the insurers depending upon the size of the business.
Office insurance is commonly purchased by FinTechs and can include employers liability, public liability, computer equipment (in and away from the office) and general contents. If your employees are travelling, we would also recommend a business travel insurance policy to cover your liabilities, personal accident and costs.
Below we talk to James McBride Wilson at 'CFC Underwriting' and Anna Husband at 'Hiscox Insurance', to obtain their perspective on the challenges they face
If employees aren’t achieving their individual goals or become disruptive, it becomes increasingly difficult for management to achieve their strategic objectives.