☰ Navigation

1-888-643-2217 Email ABEX
Keeping you updated

Archives

Intro to FinTech Insurance

Posted on by

Digital innovation is transforming financial services across the world. New technology and distribution methods are offering customers faster, individually tailored and more accessible financial products.

The insurance industry is on the cusp of a more modernized approach for FinTech businesses. It is now crucial for brokers to advise clients on potential pitfalls in standard insurance policies and source policies tailored to their unique needs.

In the intro you will learn:

What is FinTech?
FinTechs are technology-led financial services companies which provide consumers and businesses with innovative tools and products to manage and control their money, whether it be app-based banking, digital lending, investment platforms, trading platforms or money transfer services.

The need for bespoke insurance
Understanding the unique exposures faced by FinTech businesses as they continue to innovate is key to ensuring the right coverage.

Key exposures for FinTech
FinTech businesses have a unique combination of exposures that don’t fit the typical financial institution (FI). These risks include the ever-evolving regulatory environment, technology failure, cybercrime and more.

Claims examples
A few claims examples involving theft of funds, technology failure, sub-contractor vicarious liability, IP infringement and more.

Click here to request the Intro to FinTech Insurance guide.

Source: www.cfcunderwriting.com

5 Things you Need to Know about NFTs

Posted on by

Non-fungible tokens (NFT) have taken the digital world by storm in recent years. From Snoop Dogg to high school students, people and their NFTs are making waves.

But what are they? And are they a fad or here to stay? CFC has answered the top 5 questions about NFTs.

What are NFTs?
An NFT is a blockchain held token that at its most simplistic is a certificate of ownership over an original item, typically (but not always) a digital asset, such as artwork, audio, videos or even memes. As digital assets are so easily shared, downloaded or copied this provides ownership to one person for the original. In real art terms think of it like the fact that anyone can own a print of Van Gogh’s, The Starry Night, but there is only one original. The NFT is akin to owning an original digital asset.

By definition, fungible means replaceable or interchangeable, so a non-fungible item is the opposite, meaning it is unique and cannot be replaced by something else. For example, currency (including cryptocurrency) is fungible as you can exchange £1 coin for another and you’ll have the same thing, but an NFT is one of a kind.

Are NFTs and cryptocurrency the same?
No. The confusion usually stems from them both being stored on a blockchain. Cryptocurrency is essentially a coin and operates more like traditional money and is native to a blockchain. NFTs are more like digital deeds and are created on a blockchain. The biggest differentiation between the cryptocurrency or coins is that cryptocurrencies have their own blockchains, whereas NFTs are built on an existing blockchain. So for example on the Ethereum blockchain, the cryptocurrency native to the chain is Ether but the Ethereum blockchain is the most commonly used blockchain for the creation of NFTs.

What is an NFT marketplace?
An NFT marketplace is a platform that allows the buying and selling of NFTs. It’s like any large ecommerce site, but just for NFTs. There are many marketplaces which provide the minting process, which is how an NFT is created and becomes live on a marketplace for sale. Compared to traditional online marketplaces, purchasing fungible assets can be more time consuming and costly. To be a part of the NFT marketplace users are required to have a crypto wallet to store their cryptocurrency after selling an NFT.

Can NFTs be copied?
It’s the token that is the valuable part of the NFT which cannot be copied. However, this does not mean the asset itself cannot. Think of the token as an artist’s signature on a famous painting, while the painting can be copied, it’s the artist’s signature (or token) which makes it authentic.

When did NFTs become so popular?
In 2014 a digital artist minted the first NFT, Quantum. Following this, various other games, and platforms started utilizing NFTs and popularity started to build. But it was 2021 which saw the biggest boom, with the likes of Bored Ape Yacht Club attracting the attention of Eminem, Paris Hilton, and Snoop Dogg. McDonalds created the McRibNFT for a Twitter campaign, and the Kings of Leon’s NFT provided fans with a limited-edition vinyl and front row seats to future concerts. And little old Quantum was sold for over $1.4 million in a Sotheby auction.

The digital transformation of collectibles through NFTs enabled brands to engage with customers in new ways. Companies across the tech and media sectors are finding unique ways to implement NFTs into their products and services – whether this be in their games to add player engagement, or as part of a marketing strategy on behalf of their customers. The virtual platform Decentral held its first fashion show including famous designer brands such as Dolce & Gabbana and Paco Rabanne.

From a brand perspective investing into NFTs may be an inventive way to engage with their users and to build a sense of community. NFTs can be used to raise funds for charitable causes and to deliver unique experiences to their customers.

Source: www.cfcunderwriting.com

Beware of “BazarCall” Ransomware Attack Method

Posted on by

The new attack method has been growing in use among well-known ransomware groups and was responsible for 10% of malware incidents last quarter.

What is it?

BazarCall is a new attack methodology, known as a T.O.A.D (telephone-oriented attack delivery), which utilizes a phishing email to trick the victim into phoning a call centre – rather than clicking a link – and instructs them to download malicious file which infects their computers. By doing so, the BazarCall attack subverts common cyber security controls and allows the hacker to carry out a ransomware attack undetected.

The phishing emails usually refer to a subscription, for instance an antivirus software, which the victim never requested. The phishing email falsely claims that the only way to cancel this fake subscription is to phone the call centre.

From there, the hacker verbally guides the victim through the process of downloading a malicious Excel file with macros and then enabling those macros, which in turn infects the computer with malware.

Why is it critical?

Because the BazarCall method doesn’t require the user to click a link (as you would expect in a normal phishing email) common cyber security tools like email security filters can’t detect it. The method also subverts security controls because the user is downloading the malware themselves, unlike some more typical cyber attacks where the hacker must first penetrate the network.

Workplace security awareness education about phishing emails and social engineering doesn’t often include warnings for telephone-oriented attacks, which makes this attack more lucrative for hackers and more challenging for businesses.

What has CFC seen?

In early 2022, CFC’s cyber threat analysis team, which is responsible for analyzing and responding to cyber threats on behalf of CFC’s cyber insurance clients, first observed an increase in adoption of this technique by a variety of well-known ransomware groups.

In response, CFC analyzed its cyber customer base and found that BazarCall accounted for 10% of successful malware infections detected across its cyber portfolio in the last three months.

However, by intervening quickly, to date CFC has detected and removed every case of this malware within its impacted customers, at no cost to them. This intervention can happen at three stages:

  • By identifying whether a specific victim has received the phishing email, but not called the phone number
  • Whether they’ve called the phone number within the email
  • Whether they’ve installed the malware

How to mitigate

In order to protect your business from such attacks it’s important you’re implementing the following:

  • Keep all software and firmware up to date: Every device needs antivirus software. If an employee downloads a malicious application like the one from Bazarcall, or if an application becomes infected, antivirus software along with modern, up-to-date firewalls will help to secure the device and remove the infection.
  • Implement multi-factor authentication (MFA) on all remote connections: MFA can help reduce the amount of lateral movement and privilege escalation hackers can achieve within your systems. Even if your password is in the hands of the criminal, it is unlikely they will have your other forms of verification too. For more on MFA best practices, read our cyber tips piece on multi-factor authentication.
  • Employee security awareness training: The majority of cyber attacks are the result of human error, particularly employees who inadvertently click on malicious links or fall victim to social engineering attacks like BazarCall. Carry out regular security awareness training with your employees and ensure it covers all types of social engineering attacks.

For other ways to keep your employees safe read our article, Staying Safe Online.

Source: www.cfcunderwriting.com

Media Insurance Myths Debunked

Posted on by

Media liability insurance protects businesses against lawsuits brought against them for defamation, intellectual property infringement and breach of confidentiality. Insurance is imperative to cover these wide range of common risks in the media and entertainment industry.

My general liability policy will cover me for media liability claims
The majority of general liability (GL) policies will contain a specific exclusion for defamation and intellectual property (IP) infringement. A typical GL policy will cover bodily injury or property damage due to the insured’s alleged negligence, not for claims arising out of the content they create or disseminate. CFC’s media liability policy offers defamation and IP protection for content creators.

Only commercial entities have an exposure to media liability claims
Any individual with a public profile creating and/or posting content in the public domain has an exposure to defamation, IP infringement and breach of confidentiality. The news is full of examples of celebrities and high-profile individuals being sued for what they say online. CFC’s media liability policy offers protection against all of these exposures.

It’s impossible for us to be infringing on anyone’s IP when we came up with the original idea
It may be true that a business developed an idea from scratch, however, many projects include the use of third party owned IP, such as music or photographs. If you don’t have robust procedures for licensing in content, or even inadvertently make an error with the license owner or fees payable, you could be infringing on IP. Even when third party owned content is not used, it is extremely difficult to comprehensively guarantee your artwork or project is not infringing on another’s IP. CFC’s claims team have extensive experience in handling such IP issues, providing you with peace of mind in the event of a claim.

I have a longstanding relationship with my clients so they won’t sue me if I miss a deadline or cause a copyright infringement issue
Unfortunately, a longstanding relationship does not stop clients from bringing lawsuits against you, especially if they are being sued themselves by a third party for an infringement or defamation issue because you have created the content in question. It is important to protect yourself against both breach of contract, issues as well as media liability claims.

I would never breach an NDA so I don’t have to worry about having a breach of confidence claim or invasion of privacy claim brought against me
An inadvertent verbal slip to someone, a publication catching wind of your work, or accidentally exposing sources can all lead to claims. Particularly for publishing or broadcasting companies, portraying a source or subject in a way that person is offended by could land you in litigation. CFC’s media liability policy does not sub-limit defense costs, and options are available for costs in addition coverage

CFC’s media liability policy offers relevant cover for businesses and individual operating in the media and entertainment industry. Cover includes IP infringement and defamation, breach of contract, contingent bodily injury or property damage and sub contractors’ vicarious liability. CFC can also package cyber liability and commercial general liability into their media package to provide a comprehensive solution. Make sure your clients have the right cover in place!

Source: www.cfcunderwriting.com

Strategies for Navigating a Hard Market

Posted on by

In the insurance industry, the term “hard market” describes the market cycle, when premiums increase, coverage and capacity for many types of insurance decreases. A hard market can be caused by a number of factors, including:

  • falling investment returns for insurers
  • increases in frequency or severity of losses
  • and regulatory intervention deemed to be against the interests of insurers

IRMI Research Analysts have been tracking the ebbs and flows of the market cycle for more than 30 years. What are the trends?

We had an extremely hard market in the mid-1980s that moderated into an extended soft market in 1987 that lasted to 2000 and then turned to a full-fledged hard market following the terrorist attack in September 2001. Improved insurance results and financial performance resulted in a return to a soft market in 2004 that bottomed out in 2013 and remained relatively stable through 2018. In 2019, we entered the current hard market, and it is the toughest market buyers have seen since the mid-1980s.

As you can see, for the past 3 decades, the industry has experienced extended soft markets lasting roughly 10 years followed by hard markets with durations of about 3 years. If this cycle holds true, the market should begin to soften sometime in 2022 or 2023. Only time will tell when it will actually occur.

In the September 2021 issue of The Risk Report, we reported that, while brokers do see signs that price increases are beginning to level off for some lines of insurance and customer segments, the global market continues to harden for most lines and regions. Our message to risk managers is that 2022 will present another challenging renewal cycle and you should be investing in your risk management programs.

IRMI has compiled a checklist of 16 proactive strategies you can put into action to help mitigate the effects of a hard market. Implement these best practices at your company—or share
them with your clients—to present your organization to insurers in the most favorable light possible, and anticipate and plan for possible setbacks in coverage terms, limits, deductibles, and pricing.

Please click here to access the checklist.

Source: www.irmi.com

Blog

FOLLOW OUR BLOG

Receive notifications of new posts automatically.

ABEX - AFFILIATED BROKERS EXCHANGE IS ON FACEBOOK.

Like us on Facebook
Connect with us on LinkedIn

CONNECT WITH US ON LINKEDIN