nsurance Giants See ‘Big Opportunity’ in Cryptocurrency Storage Coverage

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nsurance Giants See ‘Big Opportunity’ in Cryptocurrency Storage Coverage

Post by GameOfCoins » Sat Jul 21, 2018 1:09 pm

Big insurance companies such as XL Group, AIG and Chubb are quietly offering cryptocurrency insurance as cryptocurrencies and blockchain technology continue to gain acceptance.

While the insurance companies active in this sector are not doing a lot to publicize their activities, those interviewed said they can avoid liabilities.

According to Bloomberg more than a dozen underwriters are providing cryptocurrency coverage, although most insurers, when contacted, chose not to be interviewed.

More crypto startups, meanwhile, are viewing insurance coverage as important as they recognize the need for protection from crime, as well as coverage for legal actions against executives and board members.

Lucas Nuzzi, director of technology at Digital Asset Research, said insurance is a necessity for crypto companies, as such protection can make it easier for companies to work with banks.

Premiums Not Cheap
The premiums are not inexpensive, however, as underwriters in some cases are charging more than five times what an average business would pay to protect against loss and theft.

Crypto startups can pay premiums up to 5% of coverage limits annually. Companies seeking more coverage can require up to 12 underwriters, each of which can offer $5 million to $15 million in coverage one source noted.

Mike Belshe, CEO of BitGo, said the company met with about 75 insurers in May after discontinuing its coverage in 2016 due to the cost. The company became one of the first in the industry to receive insurance in 2015.

https://www.ccn.com/insurance-giants-se ... -coverage/

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