In a rare interview, London-based insurance firm Arch says a sizable but containable loss would demonstrate how well its $150 million crypto storage policy would react.
London-based Arch Insurance International, which works with a number of big-name brokers offering crypto cover, has yet to pay out for any losses in this relatively new market.
In response to this, Croome helped create a consortium, including mega-broker Marsh and global law firm Norton Rose Fulbright, to offer cold storage cover for crypto assets.
Marsh, the world's largest insurance broker, recently announced a deal with Ledger Vault, the institution-focused arm of Ledger, the well-known hardware wallet provider for $150 million cold storage cover; Marsh is working in a similar way with crypto custodian KNOX. Pet peeves.
Norton Rose Fulbright enlisted the help of Peter McBurney, Professor of Computer Science, King's College London and a consultant with the law firm, to spell out technical aspects of key management and crypto storage and create appropriate policy wording.
Crypto insurance is widely seen as a prerequisite for greater institutional involvement in the market.
Insurance companies like Arch bring in third party specialists to examine physical vault security and do the same to understand and communicate the risks around the storage of crypto.
McBurney said ultra-high net worth individuals or hedge funds who already have relationships with custodians for storage of fine art or gold bullion are driving the market for crypto insurance.
Lloyd's of London, the centuries-old insurance market, has realized there are new revenue streams to be had with crypto.
The risk relating to crypto held on exchanges and in wallets connected to the internet is a very different animal from vaulted cold storage.
This Blue-Chip Crypto Insurance Consortium Lacks One Thing
Published on Jan 13, 2020
by Coindesk | Published on Coinage
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