One of the biggest problems in crowdfunding is that the crowdfunding company does not perform, typically by not delivering a pre-sold product as promised.
Now, if the reason for non-performance is fraud, American International Group (AIG), a major global insurance company, will insure the investor.
Called ““Crowdfunding Fidelity” this product will protect individual investors against the theft of issuer assets by issuer directors, officers, or general employees which cause a direct loss to the individual investor.
This new insurance product was developed specifically to protect investors on equity crowdfunding platforms against issuer fraud.”
At the moment the product will be available only to purchasers in Canada and the UK