Crypto Insurance: The new trend
July 23, 2018 6:17 am,
These days more and more businesses are taking their way into Crypto Insurance, a new trend in the world of Cryptocurrency. Insurance for Cryptocurrency will be a big opportunity.
Crypto start-ups 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. Coverage appears to be more available to companies in Japan. Mitsui Sumitomo Insurance in Japan covers both internal and external risks, including employee theft, mistakes, and unauthorized access. The insurer also provides security audits and does background checks for employees. A transaction services provider, bitFlyer, offers coverage for payment transactions in Japan, covering merchants for gateway issues, mishaps and transaction delays to companies with POS systems. The coverage is offered through Mitsui Sumitomo Insurance.
There are some companies that pretend to be dealing in virtual currencies but instead scam investors and take their money. Insurance companies must develop mechanisms that will protect them against falling victim to these kinds of companies or offering insurance to scammers.
Big insurance companies such as XL Group, AIG, and Chubb are offering Cryptocurrency insurance as cryptocurrencies and blockchain technology continue to gain acceptance.
Some crypto companies are exploring self-insurance because of the high cost of available policies. In addition to the high cost, policies can take months to approve, and they include exclusions.
The crypto industry is an unregulated field which includes financial crime, cash theft, and misrepresentation, but still, the world is adopting this technology. Each day, legislators are adopting more laws treating this field, and police and judiciary are increasingly punishing the people who abuse the growing innovation.