On 2 March, Lloyd’s, insurance and reinsurance market launched an innovative insurance solution for cryptocurrency wallets.
The insurance giant worth £53.5 billion of syndicate-level assets has introduced the wallet insurance for Coincover. With this, the assets held in online cryptocurrency wallets will stand insurance against theft and hacks.
Lloyd’s is a 334-year-old organization that insures and spreads risks of businesses, organizations, and individuals. In 2018, it had 84 syndicates, 55 managing agencies, and 303 approved brokers who collectively wrote £35.5bn of gross premiums.
One of its syndicate Atrium has created this unique liability policy in partnership with Coincover.
What makes Lloyd’s Cryptocurrency Product cover unique?
The insurance policy offers flexible insurance limits from as little as £1,000. And protects the assets held in hot cryptocurrency wallets against losses. Moreover, the limit is dynamic and the price variation of the crypto assets drives the limit.
Thus it protects the insured against the volatility of the crypto assets. In case of an unfortunate event, the insurer will receive the indemnified amount of the underlying asset value.
Lloyd’s insurers like TMK and Markel who are also part of its PIF (Product Innovation Facility) back this latest introduction. Lloyd’s Product Innovation Facility has been working hard to provide coverage to hard-to-insure risks. Currently, PIF has an insurance capacity of £150 million and 27 underwriters.
Right in time solution
Coincover CEO, David Janczewski is quite excited about the introduction of this dynamic insurance cover. He shared that the Coincover team is delighted to work with Atrium and Lloyd’s PIF members. And the outcome has been an insurance product that will enable crypto adoption. According to David, such dynamic insurance products protect crypto assets adequately. Thus will attract more non-crypto asset holders to the cryptocurrency ecosystem.
Adding to the same, Trevor Maynard, Head of Innovation at Lloyd’s said that as more money enters the crypto-asset market, it will attract more hacks. Thus, there is a growing demand for such insurance covers that protect crypto assets from hackers. He agreed that crypto companies keep taking advanced measures to protect the assets but once in a while someone gets through. And then the losses turn catastrophic.
Coincover is a simple to use platform for the novice traders. Using Coincover, the traders can buy bitcoins without actually knowing the in and out of the crypto space. It brings its users a monthly accumulation plan and offers complete protection of crypto assets backed by Lloyd’s. The users hold the complete ownership of their assets and the platform maintains pricing transparency.
Currently, the platform supports 130+ crypto assets. Furthermore, Coincover covers 15,000 wallets that hold crypto assets worth £280M.
Previously, we covered in detail how Visa, a traditional financial player is supporting the crypto ecosystem.