Innovative E-Crime Protection for SMEs
Liberty Specialty Markets (LSM), a segment of the Liberty Mutual Group, has teamed up with Baobab Insurance, a digital specialist in technical risk underwriting, to unveil a pioneering e-crime insurance product tailored for small and medium-sized enterprises (SMEs).
In this strategic partnership, LSM will furnish the necessary capacity for the new insurance offering, while Baobab will spearhead essential operations including broker sales, product innovation, and underwriting.
Coverage Against Advanced Digital Threats
The newly introduced policy extends coverage up to €5 million, providing a robust defense against the rising menace of sophisticated digital frauds, such as CEO impersonation and deepfake technology.
According to a spokesperson, “This fidelity insurance establishes a new benchmark for safeguarding SMEs against digital fraud,” emphasizing its customized approach to contemporary threats.
Streamlined Application Process
Setting itself apart, the product features an uncomplicated application process, focusing on five critical risk questions:
- Number of employees
- Annual revenue
- Operations in sanctioned nations
- Implementation of dual control principles for billing
- Current fraud prevention strategies
Michael Harth, General Manager for Germany at Liberty Specialty Markets, noted, “As a specialized insurer, it was crucial for us to partner with an expert in cyber risk. With Baobab, we have found the perfect specialist.”
“Together, we are releasing a product that finally offers SMEs efficient e-crime protection without burdensome application procedures.”
Addressing Market Needs
This initiative aims to bridge a crucial gap in the market, as traditional insurers often lag in adapting to the rapidly evolving digital threat landscape. Notably, incidents like CEO fraud and deepfake attacks surged by 17% in 2023, propelled by advancements in generative AI technology.
Vincenz Klemm, co-founder and Managing Director of Baobab Insurance, stated, “Threats like CEO fraud and deepfakes pose real dangers to SMEs. Together with our existing cyber and IT liability insurance policies, we are now offering these companies a comprehensive suite of services.”
“Consistent with our strategy, we are positioning ourselves as a digital specialist insurer for technical risks.”
Launch and Integration
Slated for release in March 2025, the standalone e-crime insurance will subsequently be integrated into Baobab’s broader cyber application process.
