Progressive Offers Internet Banking Protection Package
MAYFIELD VILLAGE, Ohio, Aug 22, 2001, (A. M. Best via COMTEX) -- The
professional liability group of Progressive Corp. (NYSE: PGR) said it's offering
an Internet banking protection package to provide coverage for community banks
involved in Internet banking.
An interconnecting policy is matched with an enhanced version of the financial
institutional bond to form a comprehensive product designed to fill gaps in a
bank's traditional insurance coverages, a company statement said.
Progressive's Internet banking liability policy, one half of the package, covers
liability losses arising from the Internet side of banking services. The types
of losses covered include libel, slander and defamation, damage to a customer's
electronic data, denial of service and unauthorized access to a customer's
account. The enhanced version of the financial institutional bond provides
coverage for other Internet-related losses occurring from fraudulent transfer of
funds electronically by a bank's employee, customer or an unrelated third party.
The bond segment of the coverage also includes reconstruction of data or
programs damaged by hackers or viruses.
Attempts to reach a company representative for additional comment were
unsuccessful.
High-tech versions of embezzling, vandalism and denial-of-service are forcing
insurers to address a new type of crime. Some 640 million people are using the
Internet, and that number is projected to grow to 1.6 billion by 2005. The
Surety Association of America ranks employee dishonesty as the main cause of
loss for financial institutions for the past five years (Best's Review,
September, 2001).
Fidelity coverage is a highly concentrated line, with 65% of the business
written by the top five companies. For most companies, their fidelity line is a
small percentage of their total business, usually less than 3%, with the
exception of Cumis Insurance Society, which has fidelity premiums as 40.2% of
its new premiums.
On the afternoon of Aug. 22, Progressive's stock was trading at $131.68 a share,
down 0.02% from the previous close.
Members of the Progressive Group are rated A+ (Superior) by A.M. Best Co.
John Hillman
Copyright (C) 2001 by A. M. Best Company, Inc.
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KEYWORD: MAYFIELD VILLAGE, Ohio
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