MARKEL
Cyber threats reach unprecedented levels The sophisticated fraud techniques Natalie describes represent one aspect of broader cybersecurity challenges facing fintech companies. Cyber threats have emerged as the sector’ s most pressing risk exposure, with Nick recalling that many companies initially declined cyber coverage when Markel first launched its fintech product in 2016.
“ A lot of companies didn’ t buy cyber. They would look at the professional indemnity and directors’ and officers’ cover under our policy, and perhaps the crime, but they wouldn’ t buy the cyber,” he says.
Awareness has shifted dramatically following high-profile cyber attacks across multiple industries.“ Today, I would say that almost every single company that we insure, regardless of size, buys cyber,” Nick continues.
Current cyber risk levels represent the highest threat environment Markel has observed during its fintech insurance journey, Nick says.
Fintech companies face particular vulnerability due to their digital-first business models and valuable customer data holdings. Payment processors, digital banks and cryptocurrency exchanges represent especially attractive targets for cyber criminals.
Markel has responded by incorporating comprehensive cyber coverage into its fintech policies and developing risk management tools to help clients improve their security posture.
Artificial intelligence and digital assets drive future risks Beyond current cyber and fraud challenges, Nick identifies artificial intelligence and digital assets as the most transformative trends reshaping fintech risk profiles.
Both technologies are being adopted simultaneously across the sector, creating unprecedented exposure combinations that extend beyond traditional claims patterns.
“ Artificial intelligence and digital assets are probably two of the most significant and transformative trends that I think we’ ve ever seen in the fintech sector,” Nick explains.“ They both seem to be happening at the same time, which is quite interesting.”
AI adoption spans customer-facing applications and back-office functions, but regulatory frameworks remain underdeveloped. While the European Union has implemented AI regulations, the UK has yet to establish comprehensive oversight.
“ It’ s obviously very early days with regards to artificial intelligence and some of those risk exposures that might arise from that,” Nick says.“ Insurance policies will have to adapt to cater for some of those specific types of exposures that come out of AI.”
Digital assets have achieved mainstream adoption as institutional investors enter cryptocurrency markets. The underlying blockchain and decentralised finance technologies are being integrated into traditional financial services.
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