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AIGlaunchescrowdfundinginsuranceproductforinvestors.htmlAmerican International Group (AIG) launched a new insurance product for the fast-growing crowdfunding investment industry. Eureeca, a Dubai-headquartered global crowd investing platform, is the first platform to offer investors the AIG coverage.
The new product - Crowdfunding Fidelity - is the first crowdfunding insurance product to offer investors protection against issuer fraud, and is now available to platforms in the UK and Canada.
Crowdfunding platforms enable innovators to bring their ideas to life and offer retail investors the opportunity to provide capital for start-ups and growth stage companies around the world. Before the development of crowdfunding, only high net worth individuals and institutional investors such as venture capital funds and private equity firms were typically offered these opportunities.
Eureeca, which is regulated by the UK Financial Conduct Authority, launched in 2013 in Dubai and focuses on providing deals from the Middle East, Europe, and Southeast Asia.
Alex Blom, Head of Financial Lines AIG MENA, "Financial technology like crowdfunding increases the potential for economic opportunity, but it also increases the potential exposure of businesses and individuals to new risks. Crowdfunding has begun to show its potential in the region and we are delighted that we were able to partner with Eureeca locally to create a product that will be of benefit here and elsewhere."
Crowdfunding Fidelity protects individual investors against the theft of issuer assets by issuer directors, officers, or general employees which cause a direct loss to the individual investor. By subscribing to this innovative new product, crowdfunding platforms will enhance the value they can offer investors by offering protection against issuer fraud. Although there have been limited instances of fraud in this sector so far this new product helps to build investor trust in this emerging sector by working closely with the platforms to ensure underlying issuer trustworthiness.
Mr Blom said, "This product demonstrates AIG's continued innovation as well as its support for start-ups and the sharing economy. We hope that this product increases propensity to invest in new and growth stage businesses in the region which will benefit society."
Chris Thomas, Co-Chief Executive Officer and Co-Founder of Eureeca said, "The new power of the crowd and the desire to democratise investing throughout the world can unleash great partnerships. The success of the ecosystem depends on collaboration between all stakeholders. AIG has demonstrated its commitment to being one of this industry's most valued partners by engaging the crowdfunding space at such an early stage."
[c] 2016 CPI Financial. All rights reserved. Provided by SyndiGate Media Inc. ( Syndigate.info ).
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Source Citation (MLA 8th Edition) "AIG launches crowdfunding insurance product for investors." CPI Financial, 25 May 2016. Global Issues in Context, http://link.galegroup.com.prx-herzing.lirn.net/apps/doc/A453306875/GPS?u=lirn50909&sid=GPS&xid=8cb28355. Accessed 23 Jan. 2018.Gale Document Number: GALE|A453306875
