Where does your bank's coverage stand in terms of insurance carried by your asset-class peers and the industry as a whole? Are you behind, ahead, or in the middle of the pack when it comes to the Financial Institution Bond and FIB riders?
The 2013 ABA Bank Insurance Survey Report contains more than 69 tables that will provide you with a comprehensive overview of banks' corporate insurance coverage. The data is summarized by different asset size groups ranging from banks with less than $100 million to those with more than $50 billion in assets.
Among the survey's findings:
- In addition to the FIB, survey respondents purchased multiple insurance policies as part of their risk mitigation strategies. Policies carried by more than 9 in 10 surveyed banks include: Directors' and Officers' Liability, General Liability, Umbrella and Excess Liability, Employment Practices Liability, Worker's Compensation, Automobile, and Building and Contents.
- The policies with the largest proportion of survey respondents reporting expected premiums to increase were Bankers' Professional Liability, Cyber Security/Privacy, and Building and Contents.
- For D&O, the aggregate policy limit for corporate reimbursement ranged from $2 million at banks with less than $100 million in assets to $150 million banks with more than $50 billion in assets.
The 2013 ABA Bank Insurance Survey Report should be a required reading for CEOs, CROs, CFOs and any bank executives involved in decision-making about insurance coverage and institution budgeting.