Financial Institutions Industry Leader
Financial institutions face a rapidly changing and increasingly competitive environment amid wider global economic uncertainty. As technology continues to replace traditional delivery of financial services and products, the threats of data breaches and cyberattacks are creating challenges for financial institutions. Ongoing regulatory changes and rising compliance costs have added to the complexity.
With over 1,100 specialists globally, our in-depth understanding of the financial institutions industry allows us to support, understand, and measure your evolving business landscape, then minimise your exposures with solutions for traditional and emerging risks.
Our Financial Institutions Practice offers a wide range of innovative risk management and transfer solutions, from cyber and privacy liability through to more traditional risks such as directors and officers liability, professional indemnity, crime, property, casualty, and employers liability.
Our holistic approach is driven by extensive industry experience and unique insight, helping you to identify potential losses and determine how best to reduce your risks.
A financial institution is a regulated intermediary between consumers and the capital or debt markets. Generally, they are responsible for the supply of money through the transfer of funds from investors to companies in the form of loans, deposits, and investments (including stocks and bonds).
Financial institutions offer financial advice and/or services and include banks, non-bank financial institutions, insurance companies, and investment funds.
Credit insurance can reduce one of the biggest risks for financial institutions, which is the failure of obligors fail to meet their contractual obligations. Known as credit risk, this includes consumers defaulting on loans or a bank failing to maintain regulatory liquidity levels.
Cyber risk is an increasing exposure for financial institutions, as the industry continues to be transformed by technology and given the sensitivity of the data held and the transactions executed. With specific cyber coverage and appropriate risk management plans in place, you can better understand, measure, and manage the threats posed by cyber breaches and business interruption.
Because financial institutions are often highly regulated, legal and compliance risks are also prevalent. This requires having appropriate financial and professional liability policies in place to protect boards, directors, and the business itself from mistakes and fraud committed by employees, bad employment practices, or sanctions for regulatory violations.
Financial institutions face numerous emerging risks today — pandemics, climate change, emerging and enterprise technology, geopolitical, and regulatory risk. Financial institutions must work proactively to identify and mitigate these risks with a focus on resiliency. By doing so, they can also differentiate themselves from their competitors.
Marsh’s more than 1,100 the financial institutions specialists worldwide, backed by advanced data analytics tools, can support your efforts to understand the impact of these risks on your organisation, make informed decisions about how to manage them, and optimise your total cost of risk.
There are four generally accepted major categories of financial institutions. These include:
Depending on the type of financial institution you represent, there are a number of possible specialty insurance products you could benefit from. These might include: property insurance; employment practices liability; errors and omissions liability; kidnap, ransom, and extortion liability; fidelity coverage and fiduciary liability; directors and officers liability; and cyber insurance. In addition, many financial institutions can benefit from the use of alternative risk financing vehicles such as captive solutions.
Our specialists can help you determine which coverages would be best for your organisation based on an assessment of your risk profile, helping you reduce liabilities and improve your resiliency and operational performance.
Financial Institutions Industry Leader