Markel extends fintech insurance policy to Asian market

Specialty insurer Markel has launched its fintech insurance policy in Asia, following its launch earlier this year in the UK.

The policy is designed to offer professional indemnity to firms operating in Asia’s financial technology, or ‘fintech’, sector.

In addition to broad civil liability protection from claims by clients or other third parties, the policy also offers coverage for liability-related losses resulting from alleged bad advice, poor servicing or programming errors, as well as any costs from losing sensitive data or documents.

Other perils included in the policy include directors and officers liability cover for any claims of mismanagement brought by shareholders, employees, creditors or regulators; theft coverage for any money stolen by electronic or non-electronic means, including extortion; and cyber liability coverage in the event of a network security incident caused by a hack, denial-of-service attack, computer virus or other external attack.

As with most cyber insurance policies, Markel’s policy will cover both the business interruption losses arising from the incident as well as the cost of rectifying any computer systems.

The policy will offer protection up to a maximum limit of $10m and will be led by Singapore-based senior underwriter and head of professional and financial risks, Simon Moi.

“Our focus is to provide a broad coverage, so we have modelled our policy to be packaged together in a single cover so that it is more holistically beneficial to our customers,” said Mr Moi. “And this is the first time these protections are offered in this manner.”

Risk managers have in the past been resistant to standalone cyber insurance policies, preferring to see existing lines extended to cover any cyber-related peril. In contrast, insurers have looked to market cyber policies that also include advisory services such as communication and PR services, IT security consultants and IT forensic services, in an attempt to appeal to companies worried about cyber risks but unsure of how traditional claim-based policies can help.

However, by targetting fintech firms that are typically startups and therefore unlikely to have many existing insurance policies, and which are also especially exposed to cyber-related losses, Markel will be hoping the Asia launch of its fintech policy will be as successful as it claims to have been in the UK.

“The launch of this fintech insurance coincides very nicely with our recent tenth anniversary celebration in Asia, reflecting how we grow and develop with our customers’ needs,” said Matthew Cannock, principal officer and managing director of Markel International Singapore. “Singapore is exactly the right place to launch this product and we are positive that this product will take off, as users are becoming more aware of the increasing risks in the financial technology sector.”