BANKERS BLANKET BOND AND ELECTRONIC &

COMPUTER CRIME INSURANCE

(incorporating Money in Safe, Money in Transit and Fidelity

Guarantee Insurances)

Michael M Seward
Saturday 5 October 2019
 INSURING A BANK
MONEY INSURANCE VS. COMPREHENSIVE CRIME INSURANCE

COMPREHENSIVE CRIME INSURANCE (BBB & ECC)

Forged/
Dishonest or Loss/Damage Forged or Fraudulently
Fraudulent Acts To Property on Fraudulently Altered/ Counterfeit Fraudulent
of Employees Bank’s Altered Counterfeit Currency Manipulation of
Premises or Payment Securities Used Computer
Whilst In Instructions As Collaterals Systems
Transit

MONEY INSURANCE
 INSURING A BANK
MONEY INSURANCE VS. COMPREHENSIVE CRIME INSURANCE

COMPREHENSIVE CRIME INSURANCE (BBB & ECC)

Forged/
Dishonest or Loss/Damage Forged or Fraudulently
Fraudulent Acts To Property on Fraudulently Altered/ Counterfeit Fraudulent ATM Machines
of Employees Bank’s Altered Counterfeit Currency Manipulation of Safety Deposit
Premises or Payment Securities Used Computer Boxes
Whilst In Instructions As Collaterals Systems Extortion
Transit Threats

MONEY INSURANCE
UNINSURED EXPOSURES – CYBER THREATS

GAPS IN MONEY POLICY SOLUTION

CYBER RISKS
• Non-Physical Business Interruption
Loss
• Non-Physical Dependent Business
Income Loss
• Extortion Payments and related
Forensic Costs CYBER INSURANCE
• Post Breach Remedial Costs -
Forensics, Legal and Public
Relations
• Regulatory Action: Defence Cost &
Defence Costs
• Security & Privacy Liability Claims:
Damages, Settlements & Defence
Costs
NB: This insurance does not cover all cyber risks. Cover is subject to the terms and conditions of the Policy.
 SUMMARY
COMPREHENSIVE CRIME INSURANCE IS TRIED AND TESTED

 The Basel Committee has identified Internal and External Fraud as

amongst the greatest potential operational losses.
 Comprehensive Crime Insurance addresses Internal (Employee) and
External (Third Party) Fraud Exposures including Fraudulent Manipulation
of Computer Systems.
 It is an integral part of a Bank’s Fraud Risk Management Framework.
 Its purchase is in keeping with peer bank groups in Asia and worldwide.
 However other Cyber Risks aren’t covered.

MONEY POLICY IS OUTDATED

 A Money Policy covers loss or damage to “tangible property” whilst on the

Bank’s premises or during transit.
 It has not kept pace with technology.
 The risk of robbery in Indonesia is remote.