Liberty Specialty Markets and Baobab Insurance join forces: New e-crime insurance for SMEs

Liberty Specialty Markets (LSM), a division of the US Liberty Mutual Group, and Baobab Insurance, a digital underwriter of technical risks, will offer a new joint e-crime insurance product from March 2025. LSM is providing capacity for the new product, while Baobab will take on operational tasks such as broker sales, product development and underwriting. The aim of the collaboration is to offer the market-leading e-crime product.

With this fidelity insurance, the partners are setting new standards in protection against digital fraud risks: With an insured sum of up to 5 million euros, a customised product for SMEs is available for the first time that is specifically tailored to fraud offences such as CEO fraud and deepfakes. 

Lean, understandable and comprehensive
The new e-crime insurance is characterised by a streamlined application process and at the same time offers one of the broadest coverages on the market. Unlike the usual comprehensive catalogue of 20 questions on average, Baobab Insurance focuses on just five risk questions:

• Number of employees
• Annual turnover
• Activities in sanctioned countries
• Existence of a dual control principle for invoicing
• Existing fraud prevention measures

Michael Harth, General Manager, Germany, Liberty Specialty Markets: 
"As a specialist insurer, it was important for us to find a partner with in-depth expertise in the area of cyber risks. With Baobab, we have exactly this specialist at our side. Together, we are launching a product on the market that finally provides SMEs with efficient protection against e-crime - without an excessive application process."

Vincenz Klemm, co-founder and Managing Director of Baobab Insurance: 

"Issues such as CEO fraud and deepfakes are a real threat to SMEs. Together with our existing cyber and IT liability insurance policies, we are now offering these companies a comprehensive range of services. In line with our strategy, we are thus positioning ourselves as a digital specialist insurer for technical risks."

E-crime insurance available from March 2025 and integration into cyber planned

Generative AI is changing the quality and intensity of digital fraud threats such as CEO fraud and deep fakes: Compared to the previous year, for example, offences involving hackers posing as supposed bosses increased by 17 percent in 2023. So far, however, the market has lagged behind: traditional insurers do not have an adequate product offering that meets the requirements of a dynamically changing threat landscape. LSM and Babob are now closing this gap together with the new E-Crime product. As a standalone product, the new fidelity insurance will be available from March 2025 and will also be integrated into the cyber application process in a timely manner.