Insurers to underwrite crypto risks
Saturday, 07 21 2018, Category: Technology, Country: World
Big-name insurers such as AIG, Allianz, Chubb, and XL Group are increasingly tailoring coverage options to protect businesses in the crypto space, Bloomberg reports July 19.
Aon, a major insurance broker that claims to occupy 50 percent of the crypto-insurance market, told Bloomberg the firm is seeing more crypto-specific protections catering to the new industry.
Another broker, Marsh & McLennan, said that 2018 has been “brisk” for crypto-insurers, revealing that Marsh has now formed its first-ever team dedicated to broker policies for blockchain startups.
Bloomberg’s sources say that premiums for crypto-related firms can tally to over fivefold the average coverage costs of a traditional corporate insurance policy, sometimes as high as 5 percent of coverage limits annually. Policies may require “as many as a dozen underwriters” to chip in $5-15 million of protection apiece.