XL Catlin, the global brand used by XL Group plc XL, recently introduced a set of comprehensive financial institution bond insurance policies in the U.S. This insurance product aims to protect the balance sheet of financial institutions against employee dishonesty, burglary, robbery, forgery and similar crimes.
The latest policy comprises features like fidelity protection that covers for loss from dishonest or fraudulent acts, on premises loss protection that protects from robbery, burglary, misplacement or mysterious disappearance-related losses, and in transit coverage that covers for “on premises losses” while in the custody of a messenger or transportation company.
The bond insurance policy also provides protection from counterfeit currency losses, forgery or alteration losses, and securities to cover for losses associated with financial institutions having extended credit and incurred huge liabilities in return.
The aforementioned coverage options will be available to stockbrokers, investment bankers or managers, mortgage banks and finance companies, commercial bankers and savings banks, and insurance companies on a primary, excess and quota share basis with policy limits up to $25 million.
It has been found out that protecting organizations from crime causes insurers to incur more than $300 million in losses annually. This is because these financial institutions have to shed the money from their reserves when a client is robbed and the stolen money is not recovered. This affects the balance sheet of the companies severely.
Notably, per the FBI, nearly 4000 financial institutions had been robbed in 2014. These aspects of the latest insurance policy should therefore help the financial entities mitigate risks associated with their balance sheet.
Last month XL Catlin undertook a similar initiative to help its clients protect their financial condition. Toward this, the company introduced an online portal – CyberRiskIQ.com. This online resource aims to help clients deal with cyber security threats and data breaches efficiently through accessible cybersecurity readiness and incident response services.
XL Group currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the property and casualty insurance space are Cincinnati Financial Corp. CINF, RLI Corp. RLI and Hallmark Financial Services Inc. HALL. All three stocks sport a Zacks Rank #1 (Strong Buy).
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