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Survey Report

Insurance Marketplace Realities 2023 – Fidelity/crime

December 1, 2022

In most instances, fidelity and crime underwriters have returned to pricing renewals based on changes in exposure year over year.
Financial, Executive and Professional Risks (FINEX)
Rate predictions: Fidelity/crime
  Trend Range
Fidelity/crime Neutral increase (purple triangle pointing up) Flat to +5%

Social engineering continues to be a focus for underwriters.

  • Social engineering coverage remains largely sub-limited. The availability of higher limits is contingent upon the strength of the buyer’s controls and procedures and, when available, will generally result in a higher premium.
  • Expect limited appetite for extending social engineering to cover loss of “other property.”

Blockchain, NFTs and digital assets — OH MY!

  • Fidelity and crime insurers are hesitant to cover these digital asset categories.
  • Some insurers are imposing non-fungible token and crypto/virtual currency exclusions, even if there is little or no exposure.
  • Capacity is primarily available out of London where insurers will consider writing established, custodial risks with meaningful deductibles and premium values.

Courts continue to debate the meaning of direct loss, leading insurers to impose additional policy exclusions.

  • Courts remain divided in their interpretation of direct loss with respect to social engineering fraud schemes. The fidelity and crime market has responded by adding exclusionary language for social engineering fraud, except where explicitly covered under a social engineering insuring agreement.
  • In G&G Oil Co vs. Continental Western Insurance Company, the Indiana Supreme Court held that a ransomware attack is covered under the computer fraud insuring agreement of a crime policy. The court applied a proximate cause test and concluded that the ransom paid was a covered loss. The decision has led to insurers imposing cyber extortion exclusions on fidelity and crime policies.


Willis Towers Watson hopes you found the general information provided in this publication informative and helpful. The information contained herein is not intended to constitute legal or other professional advice and should not be relied upon in lieu of consultation with your own legal advisors. In the event you would like more information regarding your insurance coverage, please do not hesitate to reach out to us. In North America, Willis Towers Watson offers insurance products through licensed entities, including Willis Towers Watson Northeast, Inc. (in the United States) and Willis Canada Inc. (in Canada).


National Fidelity Product Leader

U.S. Fidelity Thought Leader, FINEX North America

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