Willis Towers Watson Launches Innovative Insurance Product To Protect Financial Institutions Against Social Engineering Losses

ARLINGTON, Va., Nov. 02, 2016 (GLOBE NEWSWIRE) -- Willis Towers Watson (NASDAQ:WLTW), a leading global advisory, broking and solutions company, has launched CyFI, an innovative insurance solution for financial institutions. 

CyFI, or "cyberinsurance and fidelity," is a tailored solution that addresses coverage gaps between cyberinsurance policies and fidelity bonds. 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. Large financial institutions, in particular, have become targets 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. 

Currently, neither cyberinsurance policies nor fidelity policies singularly cover the scope of losses associated with social engineering claims, and as a result, critical areas of exposure are not adequately protected.

CyFI bridges this gap by providing institutions with additional capacity that sits above their insurance program's existing attachment points for individual primary cyber and fidelity placements. Additionally, the product aims to grant definitive coverage for scenarios where gaps in coverage exist on a primary basis. Such gaps may include losses arising from social engineering; theft of confidential information; a narrow definition of computer systems; mechanical failures or errors in program designs; and cyberterrorism.

"This is a strategic way for us to help financial institutions ensure seamless cyber risk protection across their entire insurance program," said Anthony Dagostino, executive vice president and Cyber/E&O practice leader, FINEX, Willis Towers Watson. "Because CyFI bridges coverage gaps, it enhances an insureds primary placement while also fitting neatly over existing programs, providing an effective risk transfer solution. We expect that this solution can also be customized for other industries, as social engineering is not an issue facing only financial institutions."

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