New offering from Inigo: Fraud Cover Protection Product
Inigo Limited, an insurance company based in the UK, has made its debut in the catastrophe bond market with the introduction of a new product called Inigo Crime Excess. This DIC/DIL excess policy is designed to provide top-up cover for standard crime clauses, particularly focusing on evolving risks such as AI-driven social engineering fraud.
The new product, led by Underwriter Tom Falkner, aims to bridge the gap in traditional coverage for these emerging risks. According to Falkner, the product is a response to the expanding threat landscape, where AI has enhanced the realism and scale of social engineering attacks.
The catastrophe bond, named Montoya Re, carries a value of $115 million. It covers North American named storms and earthquakes, as well as offering an optional inclusion for Digital Asset loss. The transaction uses a PCS industry loss index trigger, and the accounts are filed under Syndicate 1301, which Inigo acquired as part of its acquisition of StarStone Underwriting Limited.
Inigo Crime Excess also covers social engineering fraud losses, a sector that has seen a significant increase in incidents. The UK Government's Cyber Security Breaches Survey 2024 reported that 58% of large businesses have experienced a cyber-attack in the last 12 months, with phishing being the most common. However, it's important to note that the social engineering cover provided by the new product is untested.
The cat bond issued by Inigo is the company's third, with a coupon of 11.5% above money. The product allows the insured to retain consistency of their primary carrier and keep their existing Bond forms without having to take on a completely new policy wording.
In addition to the benefits of a DIC/DIL excess layer, market-leading claims handling, global licensing, and Lloyd's security and capacity with a financial strength of AA-, the new product offers a number of unique features that set it apart in the market. These include its focus on evolving risks, its optional digital asset coverage, and its aim to provide a seamless transition for insured parties.
With this launch, Inigo has solidified its position as a forward-thinking player in the insurance industry, demonstrating its commitment to innovation and risk management in the face of an ever-changing threat landscape.
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