When it comes to your bank’s insurance program, you need insurance coverage to address your unique risk profile. There should not be an “off-the-shelf” approach when it comes to insurance for banks. We partner with banks to understand the unique current and emerging risks impacting your bank now and in the future and will devise a program that specifically manages these banking risk exposures. Insurance banks should consider might include:

• Directors, and officers’ liability

• Errors and omissions

• Crime and FI Bonds

• Cyber

• Property & Casualty

• Employment practices liability

• Pension Trust/Fiduciary Liability

• Transactional risk

• Financial Specie

• Excess SIPC

• Mortgage Warehouse Fraud

• Mortgage Impairment (MIP)

• Lender-placed Insurance

• Master Trust Property & Liability

• Collateral Protection (CPI) and Vendor Single Interest (VSI)

• Real Estate Owned Property

• Surety Bonds

• Credit Insurance

• Employee Benefits

Specialized insurance for banks is key due to the unique and complex risk banking landscape. Whether you are a retail bank, community bank, investment bank or a global institution – you need tailored and specialized risk and insurance solutions. The need for specialized insurance may also be dependent on specific regulation, your customers, and/or your board members. Insurance programs for banks will often combine several lines of coverage.

Although the likelihood and impact of individual risks can vary from bank to bank, there are significant risk categories that broadly apply to most banks:

• Cybersecurity threats

• Regulatory compliance

• IT/Technology transformation including AI

• Data privacy and protection

• Economic volatility/ financial resiliency

• Operational Risk

• Geopolitical risks

• Business interruption

• Human capital

• Vendor Management

D&O insurance is designed to protect individuals from personal financial losses due to legal actions related to their roles as directors or officers, while also safeguarding the company's balance sheet. For banks, this type of policy can cover critical areas of concern for board members. In the financial sector, where fiduciary duties are paramount, executives might face lawsuits from shareholders, regulators, or other stakeholders. D&O insurance helps attract and retain top talent by providing a layer of protection, encouraging qualified individuals to assume leadership positions without the fear of personal liability. Additionally, it supports the stability and continuity of banks by offering a financial safety net for key decision-makers.

Confidence and clarity are crucial for effective strategic risk management in banks. How you detect, analyze, and process data determines your response to market signals affecting your risk profile.

To achieve this, banks must balance and extract insights from all available internal and external risk data sources. However, the sheer volume of data can be overwhelming. Without the right system or expertise, banks risk making poor decisions, missing opportunities, or increasing operational costs.

Lockton’s data and analytics platform quickly transforms complex data sets into actionable insights, empowering better decision-making and delivering an insurance program that prepares you for future challenges.