CRYPTO CURRENCY INSURANCE CAPACITY FALLS SHORT AT JUST $1BN
The global insurance industry has capacity of just $1bn to insure crypto assets, according to Evertas, a crypto-asset insurer. The lack of supply is driven by the relatively small size of the crypto asset market, a lack of underwriting expertise and concern for crypto risks, it said. “Some carriers have taken blanket positions refusing to consider any risk related to crypto assets and the position is partially driven by early negative stigma associated with cryptocurrencies,” said J Gdanski, chief executive and founder of Evertas. “The current crypto-asset market is currently worth around $300bn and the premium market here is incredibly small when compared to other more mature products. This market is too small for large, established carriers to develop and deploy sizeable full-time teams,” he said. Some insurers are ‘dabbling’ in the market but insurers generally lack underwriting capabilities and understanding of crypto-assets.
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