For institutional players to get involved in crypto assets, there is a need for qualified custodians but also for insurance policies that cover theft. But according to Jacqueline Quintal from Aon, the total capacity for insurance of crypto assets lags demand. Coindesk says that the estimated “total amount of coverage the industry is willing to provide to crypto custodians and exchanges top out at $6 billion.”
Coinbase, which has been actively obtaining insurance since 2013, is one of the largest customers. The company supposedly has a policy covering $250 million worth of crypto assets. Because of the higher risk, the cost of insurance is also much higher than insuring traditional assets. Ms. Quintal said that the cost for crypto insurance that covers the combination of hot and cold wallets varies significantly but it is approximately 1-2% of the total insured sum. (Source: Coindesk)
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Demand for crypto insurance far exceeds the capacity written by Larry Cermak @ https://www.theblockcrypto.com/tiny/demand-for-crypto-insurance-far-exceeds-the-capacity/ November 22, 2018 Larry Cermak