Research

Insurance Marketplace Realities: Fidelity and crime

2018 Spring Update on Commercial Insurance in North America

April 12, 2018

Price prediction

  Trend Range
Fidelity and crime: No change Flat, with increases for additional impersonation fraud coverage

Key takeaway

While affirmative grants of coverage are being offered for social engineering (impersonation fraud), each market offers the coverage differently and at varying amounts, so buyers should choose carefully.

Coverage remains broad for traditional fidelity/crime exposures, including employee theft and non-employee losses involving burglary, robbery, forgery or alteration of checks.

Buyers with bitcoin/cryptocurrency exposures need to be cautious

  • As companies begin to adopt the use of bitcoin or other cryptocurrencies, buyers need to be mindful that fidelity and crime policies often define “money” as currencies that have been “authorized or adopted by a domestic or foreign government as part of its currency” — which may not include bitcoin and other cryptocurrencies.
  • Changes to the policy wording are necessary to pick up this exposure.