North America Financial Lines Crime Insurance Report

This report focuses on crime insurance and fidelity bonds in North America, particularly examining loss trends and best practices to mitigate these losses. It highlights the growing threat of social engineering fraud, which has become a significant source of claims, particularly affecting small and midsize organizations. The report presents data from AIG on nearly 700 claims related to crime and fidelity matters from 2020 to 2022, revealing that social engineering fraud now accounts for nearly half of reported claims. The analysis indicates that smaller organizations, often lacking robust risk management resources, are disproportionately impacted by these types of losses. Additionally, the report outlines the challenges faced by service-focused sectors, which frequently experience higher claim frequencies due to their operational characteristics. It also discusses the Fidelity Research & Investigative Settlement Clause (FRISC) as a mechanism for improving loss resolution for affected organizations. The document concludes with best practice recommendations aimed at preventing and mitigating crime and fidelity losses.