Insurance fraud (specific to commercial companies)
For several years now, fraud has been experiencing significant growth, facilitated notably by the digitization of exchanges, easy access to information about companies, their leaders, and their employees on the internet and social networks, and the use of increasingly sophisticated methods by fraudsters. It constitutes a major risk for all businesses, regardless of their size or activity, which leaders must address by implementing prevention and detection tools and internal procedures.
Whether they are committed by an executive and/or an employee (internal fraud) and/or a third party (external fraud), frauds can have extremely serious consequences for companies (financial losses, damage to the sustainability and image of the company, questioning the company's liability due to the actions of employees, and even that of the leaders in case of mismanagement).
Subscribing to a "Fraud" insurance policy constitutes an additional means to protect the company when it falls victim to internal or external fraud, regardless of the method used (whether it's related to computer systems or not).
It mainly covers the direct financial losses suffered by the company as well as certain additional expenses that it is compelled to incur (expertise fees, additional operating expenses, costs related to recourse and pursuit of the perpetrators).
What are the main risks?
Financial Risks: Fraud, whether committed once or continuously, can lead to heavy financial losses and incur additional expenses for the company to deal with the incident.
Who is covered?
What are the main guarantees?
The guarantees come into play in the following situations:
- Internal fraud involving insured assets committed by certain executives and/or employees for personal enrichment and falling under one or more of the following offenses: theft (without breaking and entering or violence), embezzlement, fraud, forgery or use of forgery, counterfeiting, or falsification.
- External fraud involving insured assets committed by third parties for personal enrichment and falling under one or more of the following offenses: theft (without breaking and entering or violence), embezzlement, fraud, forgery or use of forgery, counterfeiting, or falsification.
- Some insurance policies provide coverage for identity theft fraud (e.g., CEO fraud) based on the type of activities and security measures in place (verification procedures, double signatures, callback, etc.).
The main guarantees include:
- Guarantee of direct financial losses suffered by the insured in case of internal or external fraud.
- Guarantee of expenses incurred by the insured in case of internal or external fraud, including additional operating expenses incurred by the insured to restore normal operating conditions of its business (cost of renting replacement equipment, transportation costs for equipment and documents, additional labor costs and overtime, costs of using a subcontractor or an external service provider).
- Guarantee of fees and fees for an expert appointed by the insured to determine the circumstances of the fraud and the amount of financial losses.
- Guarantee of costs related to legal action against the author(s) of the fraud to obtain full or partial reimbursement of the claim.
- Contractual penalties imposed on the insured in case of non-performance of contractual obligations due to fraud.
- Interest on loans (interest paid or interest not received by the insured) due to fraud.
Guarantee of financial losses suffered by a client of the insured in case of fraud committed by an employee of the insured (extension of coverage).
Director of Financial Risks Department
With over two years' experience at Gerling America Insurance CY in New York, specializing in Liability underwriting, Didier later joined Aon Mergers & Acquisitions Paris as Deputy Director, driving the growth of Insurance Warranty and Tax Opinion products. Progressing to AIG Europe Limited France in 2002, he assumed various management roles in Financial Risk guarantees. In 2010, he took the helm as Director of AIG France's Financial Risks division, extending his leadership to Belgium, Luxembourg, and the Netherlands in 2014.
In 2014, he ventured into entrepreneurship and played a key role in acquiring CRF Assurances. Seven exciting years later, Didier now thrives as Deputy General Manager of CRF Assurances and Director of Financial Lines at Howden France.