Management Consulting
Aon
Full Credential Description
Aon identified a significant challenge faced by mid-market banks in the United States, which was the rapid evolution of their risk profiles due to increased exposures related to fraud and technology, particularly in the wake of the pandemic and the rise of fintech. Historically, the insurance industry had approached underwriting in a siloed manner, offering separate policies for cyber risks, fidelity bonds, and professional liability. This created a mismatch between the risk management strategies of banks and the insurance solutions available to them. To address these niche issues, Aon developed a tailored solution called FI CyberCrime Plus, a proprietary blended insurance form specifically designed for the banking sector. This innovative product combines coverage for network security breaches, data leakage, business interruption, system failures, ransomware, and both internal and external fraud into a single insurance purchase. By consolidating these risks, Aon aimed to provide clarity and ease of navigation for clients, who often faced challenges due to the complexity and variability of policy terms across different insurers. The implementation of FI CyberCrime Plus has yielded quantifiable benefits for Aon's mid-market banking clients. By aligning with leading insurance markets, Aon was able to scale the coverage to meet the specific needs of these institutions, ensuring optimized levels of capacity. Additionally, Aon's investment in in-house cyber advisory capabilities, including proprietary diagnostic tools like CyQu, has facilitated a more effective underwriting process, enabling clients to secure fit-for-purpose insurance coverage in a challenging market. Over the past five years, Aon's integrated claims advocacy team has successfully recovered approximately $4 billion in claims for clients in the banking and financial institutions sector, further demonstrating the effectiveness of their tailored approach.