Insurance for Banks
Protecting banks and other lending institutions, without compromise
Banks and other lending institutions could not play a more vital role in the success of our economy. In a constantly evolving economic climate, they require a partner that understands how to protect them from the unique risks of their sector. Travelers is committed to helping banks not only manage these challenges – but also to thrive amidst them. We do this by offering insurance for banks and financial institutions that is informed by industry-leading risk management expertise, a profound depth of financial services knowledge and exceptional financial strength.
By partnering with Travelers, financial institutions gain the support of dedicated specialists. That means an underwriting team with decades of combined experience. Claims managers with detailed technical expertise. And a comprehensive solution that combines the protections of multiple insurance products, including professional indemnity, directors’ and officers’ insurance, commercial crime protection, and pension and trustee liability.
We are fully invested in helping the finance industry anticipate risks and respond quickly and effectively in the event of a claim. Because when banks thrive, the future is full of opportunity.
Our appetite
We cover
These fall within our appetite, and we’re happy to discuss details.
- Retail banks
- Commercial banks
- Building societies
- Credit unions
We’ll consider
We may need more information to confirm a fit.
- Corporate finance (non-IPO services)
- Wealth managers
- Single-family offices
- Challenger banks
- Trust or corporate service providers (TCSPs)
- Non-depository commercial lenders
- Private banks
We do not cover
Sorry, we’re currently unable to insure the following.
- Retail non-depository lenders
- Financial intermediaries (e.g., insurance brokers)
- Payment service providers
- Financial technology (fintech) companies
Insurance for banks and financial institutions covers & highlights
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Professional indemnity
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Directors and officers
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Commercial crime
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Pension and trustee liability
General questions
Help us better understand the risk
These questions will give you a sense of the information needed to write a policy.
What is the ownership structure of the insured financial institution?
What entities or bodies regulate this financial institution?
Does this organisation have any recent acquisition activity?
Are there any macro sector trends that could impact the insured?
How has the organisation performed financially?
What is the quality of this institution’s assets?
How experienced are the insured’s management?
What are the organisation’s recent earnings?
How liquid are the holdings of this financial institution?
Let’s get specific
These are the kinds of detailed questions we will ask to better understand day-to-day operations.
- What is the ownership structure of this financial institution?
- What is the organisation’s revenue over the past three years and the revenue split?
- How experienced are the insured’s management?
- Can they furnish a record of transactions by deal size, number of transactions and average size?
- Can they furnish a record of any failed or incomplete transactions?
- Has this company had any interactions with a regulator?
- Are there any macro sector trends that could impact the insured?
- Can the bank provide us with regulatory details?
- What is the bank’s acquisition history?
- What is their capital and asset quality?
- What is the bank’s management and culture like?
- What is the bank’s product offering?
- What services does the TCSP offer?
- In what territories does this TCSP operate?
- Has/have the insured come under regulatory scrutiny?
- What are the TCSP’s compliance and governance procedures?
- Can they furnish details regarding directorship positions held?
- What are this TCSP’s distribution channels?
Related products
Investment managers
Our investment management insurance protects investment managers and fund directors against professional and managerial liabilities.
Insurance
We’re committed to providing the insurance expertise and products needed to face the varied challenges of an evolving insurance sector.
Financial institutions
Fully invested and without compromise, our dedicated underwriters have deep knowledge of the financial sector with the backing of a strong credit rating.
Let’s start the right conversation
For business
Find a broker
If you’re looking for covers and have a broker, ask about Travelers products.
If you need a broker, start with the right broker directory.
Need to call us directly? Contact us.
For brokers
Tell us about your client
You’re likely busy. Let’s save some time.
We can help faster if you can give us information about your client first. Then we’ll call you back with the knowledge we need to make a decision.
Download a proposal form:
Crime insurance (FI)
Civil liability (FI)
Directors’ & officers’ liability (FI)
Questions? Call us.
Case study
A wealth manager breaches its investment mandate
Our insured, a wealth manager based in London, employed a portfolio manager who oversaw a number of accounts that came with a mandate to invest partly on a high-risk basis. As a result of the global financial crisis in 2008, the portfolio manager had taken a conservative approach to all investments regardless of mandate. This had resulted in profits for the investors until around 2012, when the accounts started to lose money.
The insured received a complaint from an investor saying the manager had breached the investment mandate by not making enough ‘high-risk’ investment decisions, which had allegedly resulted in a loss to the portfolio.
Having Travelers cover helped the insured preserve client relationships
We worked with the insured to establish any liability and to mitigate any loss from potential legal or regulatory action. We reimbursed the insured in respect of its compensation to the affected customers.
Insights & industry knowledge
Articles to help your ambition succeed
Resources for Financial Institutions
Underwriting in a Turbulent Financial Climate
These are volatile times for financial institutions. Rising interest rates, stubborn inflation, and the impacts of ongoing supply chain challenges on investment performance have created a difficult trading environment for financial institutions around the world.
Resources for Financial Institutions
It’s a Volatile Time for Financial Institutions. Insurance Can Be a Comfort Blanket.
Are we in the throes of another 2008-esque financial crisis? The recent bankruptcies of Silicon Valley Bank (SVB), Signature Bank and Silvergate Capital in the US, alongside the hastily arranged buyout of Credit Suisse by UBS, might make us think so.
Cyber Security Resources
5 Cyber Readiness Practices to Boost Your Cyber Security
Implementing these Travelers cyber readiness practices can help achieve a high five for cyber readiness in protecting your sensitive data, trust, and operations.
