The future of SME and micro finance
Alternative finance firms offer a great alternative to traditional lenders. However, whether it is peer-to-peer lending, equity crowdfunding or initial coin offerings, this new area of finance comes with new risks, including those related to integrity, sustainability of operations and consumer protection.
Elmore’s alternative finance insurance is designed to address regulatory guidelines in a clear, cost-effective way, while meeting the requirements of early-stage businesses.
Elmore Alternative Finance Insurance
Alternative finance providers face many risks because of their reliance on digital networks and systems, increasing volumes of data, cloud technology, and outsourced services.
They must also keep up with changing regulations, demonstrate corporate responsibility, and be aware of growing media scrutiny. All of which underlines the importance of effective operational, financial and technology risk management.
Elmore’s insurance solution includes:
Alternative Finance Companies Insurance Explained
Innovative firms come with inherent risks both to themselves and their customers, so it is essential to have the correct risk management in place as well as insurance coverage.
Key risks facing alternative finance firms include negligence in the delivery of services, a cyber breach, a director’s wrongdoing or fraud.
Elmore Trading Platforms Insurance – Policy Coverage
The following cover can be combined in one policy or offered in separate policies:
Professional Indemnity Insurance (PII)
- Claims by customers
- Claims for failure of regulated services
- Claims for failure of technology
- Legal support for regulator actions
Directors & Officers Liability
- Claims by regulators
- Claims by shareholders
- Claims by employees
- Claims by other stakeholders
Cyber & Crime
- Event management
- Reputation management
- Financial loss incl. fines
- Cyber liability
Office & Employee Insurance
- Property and equipment
- Employers liability
- Public liability
- Travel insurance
Insurance Programme Management
When alternative finance companies begin to scale, rapid global expansion will require a coordinated approach to insurance acquisition. Thanks to our international network of established insurance partners, Elmore can provide a global insurance programme. If local policies require coordination by a central function, a global programme will allow for better compliance and visibility.
Partner With Insurers – Embedded Insurance
If you have a captive audience and engaged users, consider embedding insurance solutions alongside existing services. This will provide additional value to customers, differentiate your offering, and bring a new income stream to your business.
Elmore provides bespoke and innovative programmes for consumers as well as business users. Get in touch to learn more.
Fintech Risk Management
For a fintech to partner successfully with its key stakeholders, it must appreciate the breadth and depth of financial and technology risk management.
In particular, the fintech must understand the operational risks that a stakeholder needs to consider before engaging it.
Observing best practice controls and processes to onboard insurance can improve the overall governance and acceptance of a fintech.
The diagram represents the benefits of mitigating and reducing risk to optimise risk transfer through insurance.
Alternative Finance Insurance Claims
Elmore’s claims team is committed to the highest standards of service and operational excellence. Our experienced specialists focus on individual product lines and different geographies, and we always follow best practice and due diligence. When needed, we partner with specialised claims consultants to ensure that no matter how complex an insurer’s claims may be, the proper technical expertise is employed to analyse and resolve the loss.
Keeping Your Data Secure
We take cybersecurity very seriously and are one of the few practices in the insurance industry to certify with Cyber Essentials. These controls can significantly reduce the risk of unskilled, but widespread, cyberattacks.