From Ledger Insights:
Highlights
- Most believe there’s insufficient supply of digital asset insurance
- There’s more supply than last year as insurers don’t want to miss out
- Cold wallet insurance costs 0.8% to 1.2% of assets covered
- Hot wallet costs 3% to 5%
- Startups use 3rd party insurance for marketing as a vote of confidence
- Insurers are getting educated. It’s unclear whether they all understand the risks
Until now, cryptocurrency insurance has been newsworthy because of the challenge in finding cover. At last month’s Blockchain for Insurance event, Hugo Wegbrans Aon’s Global Chief Broking Officer declared that’s a thing of the past. There’s “more supply than demand”, he said and “it’s almost getting mature.” But the sentiment is not shared by others.
However, Aon should know, because it has a decent track record in the space. It brokered hot wallet insurance for Coinbase to the tune of $255 million and a similar kind of cover for the Gemini Trust (Winklevoss twins). Plus it has secured coverage for multiple specialist custody solutions with big name backers including Trustology (Two Sigma, ConsenSys), Anchorage (Visa, Andreessen Horowitz) and METACO (Swisscom).
Until now, cryptocurrency insurance has been newsworthy because of the challenge in finding cover. At last month’s Blockchain for Insurance event, Hugo Wegbrans Aon’s Global Chief Broking Officer declared that’s a thing of the past. There’s “more supply than demand”, he said and “it’s almost getting mature.” But the sentiment is not shared by others.
Read the full article to find out more.
