Protean Risk have today launched, what we believe is, the first 'PSD2 compliant' insurance policy in partnership with specialist Lloyd's underwriters. The policy is designed specifically to meet the requirements of the Second Payment Services Directive (PSD2), which be implemented in the UK in January 2018 through the Payment Services Regulations 2017.
The new regulations require Payment Institutions and e-Money Institutions to apply to be re-authorised by the Financial Conduct Authority (FCA) in order to continue to provide services. Firms seeking the new Account Information (AISP) and Payment Initiation Service Provider (PISP) permissions will require specific insurance (or a comparable guarantee) to ensure they meet the European Banking Authority (EBA) Guidelines.
Nathan Sewell, CEO of Protean Risk explains "The Protean Risk exclusive insurance scheme will enable firms to evidence 'PSD2 compliant' insurance. The cover provided responds directly to the additional risk exposures and compulsory Professional Indemnity Insurance (PII) requirements created by the PSD2 directive, something we have been working hard to achieve with advice from leading PSD2 compliance experts. The policy coverage includes specific data security requirements which are not covered under a typical PII policy."