AssuredPartners London

Hedge Fund Benchmarking Survey

The AssuredPartners London Hedge Fund Insurance Benchmarking Survey examines the insurance market serving the asset management industry. Insurance buyers can use the findings to benchmark their policies with their peers along with gaining a better understanding of the risks that are faced by the asset management community and how insurance can help to guard against the most relevant exposures.

The survey focused on four key themes:
• Trade errors in excess of $25,000 in the last 24 months
• Social engineering events (this is where fraudsters using a fake identity, convince an employee to make a bank transfer to a third party)
• Cyber
• Factors affecting renewal

Some of the key findings were as follows:
• 11% of participants have experienced a trade error in excess of $25K in the last two years
• 1 in 10 of participants said they either had or didn’t know (which is a concern) if their firm had experienced a social engineering event
• 22% of participants stated they had experienced some form of cyber event with two participants having been a victim of a CryptoLocker ransomware scenario which demonstrates the rise of cyber criminals' focus on the asset management community. Many feel it is a question of ‘when, not if’ they will be targeted
•The claims paying reputation of the insurer was viewed as the largest contributing factor when selecting their insurer partner above that of premium and financial strength.