Fintech Insurance Products

Modern fintechs face growing risks — from cyberattacks to regulatory scrutiny — yet still rely on fragmented insurance cobbled together from legacy providers. This patchwork approach often leads to costly gaps in coverage and uncertainty at claim time.

Relm’s new product suite solves this problem by combining critical coverages into a unified structure with two insurance products:

NOVAFINTECH is tailored for fintech enablers — companies that build, supply, or power financial technologies without offering financial services themselves.
OMEGAFINTECH is built for companies that deliver financial services through technology.

NOVAFINTECH

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Who NOVAFINTECH is for?

Digital Banking Platforms: Businesses that provide white- label solutions to traditional financial institutions to allow those institutions to offer digital experiences like mobile banking, onboarding and digital UX.

Payment Technology Providers: Tech solutions like payment gateways, acquiring / issuing services, POS, digital wallets, real-time payments.

Fraud Prevention and Identity Verification: Technology products specialized in detecting and preventing fraud, like behavioral biometrics, document verification, identity scoring, and transaction monitoring.

Risk Management, Compliance and RegTech: Tech solutions that help financial institutions meet regulatory requirements and manage operational or credit risk like AML, trade surveillance, risk modeling, regulatory reporting.

Lending Technology Platforms: Providing technologies to f inancial institutions to allow them to streamline the credit lifecycle from application to servicing including digital loan origination, underwriting automation, and risk scoring.

Data Aggregation and Open Banking APIs: Providers of APIs that enable secure access to banking data and account aggregation like account linking, transaction categorization, data enrichment, API connectivity.
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NOVAFINTECH Coverage offered
Third-party
- Financial technologies product liability.
- Network security liability.
- Privacy liability.
- Artificial intelligence liability.
- Loss mitigation costs.
- Emergency claim costs.
- Public relations costs.
Regulatory
- Inquiry costs.
- Regulatory investigations.
First-party
- Incident response costs.
- Business interruption and extra expense.
- Data restoration costs.
- Bricking.
- Cyber extortion and crime.

NOVAFINTECH Broker Example

Claims Scenario: Privacy and Network Security Breach

‘MarginCall’ is a company that provides software to banks and other financial institutions, allowing them to manage their counterparty exposures on a live basis and thus optimize the collateral posted. MarginCall does not provide financial services itself. Its institutional customers frequently require it to have liability insurance in place as a procurement condition.

Financial Technology Failure:

‘LendCo’ has a fractious relationship with one of its counterparties, which has accused it of breaching loan conditions by not posting enough collateral. LendCo brings a claim against MarginCall, alleging that its software is not performing to specification. NOVAFINTECH steps in, providing cover for legal costs to defend the claim, irrespective of the ultimate outcome.

Incident response costs:

While investigating the claim by LendCo, it emerges that there may have been a network security breach of MarginCall’s computer system two years ago. As this was discovered during the policy period, NOVAFINTECH provides cover for incident response costs to determine the scope and impact, and then remediate.

Regulatory investigations:

It turns out that LendCo has deeper troubles and is subject to a regulatory investigation. Although MarginCall is not itself a regulated financial institution, it is dragged into the investigation and must cooperate fully. NOVAFINTECH provides cover for MarginCall’s costs of responding.

Inquiry costs:

The regulators are targeting one individual for an apparent error. NOVAFINTECH provides cover to ensure the individual is properly represented, giving them peace of mind, but in many circumstances also protecting the company’s interests.

OMEGAFINTECH

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Who OMEGAFINTECH is for?

Digital Payments: Platforms that enable fast, secure, and often peer-to-peer (P2P) or online merchant payments, bypassing traditional banks and card networks.

Banking as a Service (BaaS): Companies that offer traditional banking infrastructure (like account creation and money movement) through APIs to non-bank businesses.

Lending Platforms: Platforms that offer loans — either funded directly or through a marketplace model — including personal, student, or retail installment loans.

Wealth Tech: Technology-driven platforms enabling retail or institutional investors to manage, grow, or analyze their wealth — includes robo-advisors and fractional investing.

Personal Finance and Budgeting: Apps that help individual manage budgets, track spending, and save money at the same time as offering investment opportunities.

BNPL (Buy Now, Pay Later): Technology platforms that facilitate short-term installment loans at point-of-sale, increasingly replacing traditional credit cards for online purchases.
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OMEGAFINTECH Coverage offered
Third-party
- Financial services liability.
- Financial technologies liability.
- Artificial intelligence liability.
- Network security liability.
- Privacy liability.
- Management Liability.
Regulatory
- Coverage to ensure compliance with the Payment Services Directive (PSD2).
- Inquiry costs.
- Regulatory investigations
First-party
- Incident response costs.
- Business interruption and extra expense.
- Data restoration costs.
- Bricking.
- Cyber extortion and digital crime.

OMEGAFINTECH Broker Example

Claims Scenario: AI-induced Violation of Financial Regulation

‘GlobalEdge’, a multinational investment firm leveraging AI for client portfolio management and automated trade execution, deployed a portfolio management system that uses natural language processing and deep learning to generate customized investment strategies for clients based on financial profiles, behavioral data, and public data scraping (including social media and forums).

However, the AI system was not adequately trained to distinguish between public and non-public material information and began incorporating potentially material non-public information from leaked documents scraped from insecure sources.

Regulatory investigations and inquiry costs:

GlobalEdge receives a formal notice from its regulator informing of an upcoming investigation into the following allegations:

GlobalEdge executed trades based on material non-public information, violating insider trading laws.
GlobalEdge recommended and executed trades for retail clients without proper suitability checks.
GlobalEdge altered risk profiles dynamically without client consent, breaching fiduciary and regulatory obligations.

In this situation, GlobalEdge would start incurring expenses to respond to the investigation, and key individuals may need to defend their professional conduct in any subsequent inquiry. OMEGAFINTECH would pay these expenses to ensure that GlobalEdge’s position is well defended.

Financial services and artificial intelligence liability:

As a result of the above allegations, GlobalEdge receives claims for damages from retail clients who argue that GlobalEdge was negligent in performing its financial services. As a result of the dynamic risk profile changes, some clients are alleging that these changes were discriminatory in nature — they impacted some and not others. As a result, there are also claims that GlobalEdge violated the EU AIA. OMEGAFINTECH responds to these claims which are overlapping in nature, providing coverage for both the damages and defense costs.

Management liability

GlobalEdge and its directors and officers are subsequently accused of ‘AI washing’ by shareholders who feel that they misrepresented the efficacy and performance of the portfolio management system. OMEGAFINTECH’s management liability coverage would support both the company and the individual directors and officers to defend themselves against the lawsuit, protecting both GlobalEdge’s balance sheet and personal assets.