Insuring Crypto

So, you’ve just spent $2 Million on a Non-Fungible Token (NFT) of a Jack Dorsey’s first Tweet.

Even though you can’t hang it anywhere, it can be stolen.

In fact, over $11 billion of cryptocurrencies have been pilfered since 2011.

So, you need some cryptoinsurance.

And, yes, there are underwriters out there that will cover you.

But, the insurance industry hasn’t yet caught up to the crypto market as coverage capacity is in the low $Billions and the market is around $2 Trillion.

The market is gaining ground quickly, with new companies starting to insure smart contracts, while crypto security firms adding some coverage to their product offerings.

Insurtech notes that, for example: “CoinCover, an insurtech founded in 2018 with capacity provided by the Lloyd’s Product Innovation Facility members including Atrium, TMK and Markel, has embedded its product in several wallet platforms.”

And two insur-tech companies have recently announced partnerships with NFT platforms to provide point-of-purchase insurance and an insured “security vault,” respectively.

So, it won’t be long before the industry is running on all cylinders covering catastrophic Bitcoin losses that are sure to continue.

https://www.instech.london/insight/insuring-nfts-challenge-covering-new-asset-class

Source: https://jeffkoeppel.wordpress.com/2021/07/13/insuring-crypto/