Large insurance corporations offer crypto insurance, adapt insurance products to protect digital investments, but do not want to disclose business details.
In the formal and closed world of insurance underwriting, few people want to talk about this. You won't find many ads promoting or describing details on cryptocurrency insurance websites. But according to industry insiders, there's a promising new business that's increasingly attracting insurance agents: crypto insurance.
It's understandable why major insurance corporations like Allianz, AIG, Chubb and XL Group aren't revealing too many details. At first glance, insuring the crypto market may seem completely absurd. It's an industry with a well-deserved reputation as the "Wild West" - an unregulated digital sphere where fraudulent ICOs, hacking attacks (Mt.Gox hacks, and more recently, Bitfinex and Coincheck) and get-rich-quick schemes are common. The high volatility of the crypto market and the collapse of the Bitcoin price also do not help stabilize the situation. But as crypto assets and blockchain technology gain wider acceptance, insurers are adapting their insurance offerings to protect crypto investments. Premiums from insuring such risk can be substantial. According to some reports, insurance claims can be up to five times the average cost of a company's insurance premiums. Allianz Corporation believes that digital assets are becoming increasingly relevant, important and prevalent in the real economy, and is exploring product and coverage options in this area.
Insurance broker Marsh & McLennan, for the first time this year, formed a 10-person team dedicated to servicing blockchain startups.
Aon, which claims to have more than 50 percent of the crypto insurance market, recently simplified its standard policy form to speed up the process underwriting.
American International Group, which also adds cryptographic coverage to standard forms of insurance policies, said that it works with crypto platforms, but does not disclose insurance amounts and partners.
The crypto market now offers most solutions for insuring crypto exchanges and user wallets. However, given the rapid development of the crypto industry, it is likely that numerous insurance products will appear on the market this year.
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