Demand for crypto insurance far exceeds the capacity
November 22, 2018, 6:28AM EST
1 min read
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 professional services firm, the number of offerings in the market for crypto insurance lags demand. Per a CoinDesk report, 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 of crypto insurance, the report said. The company is said to have 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. 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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