Willis Towers Watson has launched a new product aimed at preventing losses from social engineering in the finance world.
CyFI – or ‘cyber insurance and fidelity’ – is an insurance solution for financial institutions to address the gap between cyber insurance policies and fidelity losses.
As financial institutions evolve in the digital age and integrate new technologies into their operations, they increase their exposure to a range of digital threats such as social engineering, theft of data and cyberterrorism, the company said in a release.
Willis said that large financial firms are especially vulnerable to the threat of social engineering schemes, where criminals exploit weaknesses in human behavior in order to gain access to a company’s network or data for the purpose of causing financial harm.
CyFI bridges the gap that currently exists, as neither cyber insurance policies nor fidelity policies provide specific cover for the scope of losses associated with social engineering claims.
Because of this, critical gaps in exposure exist.
The new product provides institutions with additional capacity that sits above their insurance program’s existing attachment points for individual primary cyber and fidelity placements, Willis said.
“This is a strategic way for us to help financial institutions ensure seamless cyber risk protection across their entire insurance program,” Anthony Dagostino, executive vice president and Cyber/E&O practice leader, FINEX, Willis Towers Watson, said.
CyFI also aims to provide definitive coverage for scenarios such as losses arising from social engineering; theft of confidential information; a narrow definition of computer systems; mechanical failures or errors in program designs; and cyberterrorism.
“Because CyFI bridges coverage gaps, it enhances an insureds primary placement while also fitting neatly over existing programs, providing an effective risk transfer solution,” Dagostino added.
Alexis Faber, FINEX practice leader, Willis Towers Watson, described the current cyber risk landscape as incredibly complex and rapidly evolving.
“Given the mounting losses associated with cybercrimes, there is strong demand for integrated product solutions,” he said. “CyFI is part of Willis Towers Watson’s broader strategy to help clients manage all cyberperil across industries, products and operations. We are proud to lead the marketplace with this innovative and proprietary solution designed to respond to social engineering losses among others.”
