Lloyd’s launches new cryptocurrency wallet insurance solution for Coincover

Lloyd’s launches new cryptocurrency wallet insurance solution for Coincover
02.03.2020 07:43 am

Lloyd’s launches new cryptocurrency wallet insurance solution for Coincover

Cryptocurrencies , Insurance

Lloyd’s has launched a new insurance policy to protect cryptocurrency held in online wallets against theft or other malicious hacks.

The first of its kind liability policy, with flexible limits from as little as £1,000, was created by Lloyd’s syndicate Atrium in conjunction with Coincover to protect against losses arising from the theft of cryptocurrency held in online, hot wallets.

It is a new type of liability insurance policy with a dynamic limit that increases or decreases in line with the price changes of crypto assets. This means that the insured will always be indemnified for the underlying value of their asset even if this fluctuates over the policy period.

The policy is backed by a panel of other Lloyd’s insurers, which includes TMK and Markel, all of whom are members of Lloyd’s Product Innovation Facility (PIF).

As part of the Future at Lloyd’s ambition to be the world’s most customer-centric digital insurance platform, the Facility is an important step towards building a marketplace that offers better value for the changing and diverse needs of customers through highly-responsive, cutting-edge risk management products and services.

This is the second new insurance product to be backed by PIF members in recent months. The first – a profit protection policy for hotels with an innovative event-based trigger – was launched in September.

Matthew Greaves, Underwriter, Atrium, said:

“There is a growing demand for insurance that can protect cryptocurrency as it becomes increasingly popular. It is a testament to Lloyd’s that the market has put together an innovative solution to mitigate these new risks and protect against theft – from physical as well as online vaults – thereby providing customers with piece of mind that their assets are safe.”

David Janczewski, CEO, Coincover, commented:

“We are delighted to have worked with Atrium and the Lloyd’s PIF members to bring such a unique and timely solution to the crypto asset market. As the crypto asset market heats up again at the start of 2020, a new wave of crypto-curious customers are standing by at the ready to jump in, having previously been put off by the lack of adequate protection against theft and loss. With this innovative new policy, we can remove these barriers and broaden the appeal of crypto. It represents another step forward in enabling cryptocurrency adoption.”

James Gadbury, Senior Broker, Prospect, the insurance broker that worked with Atrium and Coincover to create the policy, said:

“We are delighted to have provided Coincover with this new insurance cover, which demonstrates the innovative and entrepreneurial spirit of Lloyd’s. We believe Prospect and the wider insurance market should support this rapidly developing sector as it moves into the mainstream.”

Trevor Maynard, Head of Innovation at Lloyd’s, added:

“As more money flows into the crypto asset market, losses from hacks are on the rise. Nevertheless, cryptocurrency companies have found ways to protect their digital assets from theft and, by working closely with Lloyd’s underwriters, to insure losses that do slip through the net.

“Lloyd’s is the natural home for insurance innovation because of the unique ability of syndicates to collaborate to insure new things. I am delighted that our Product Innovation Facility – now with almost £150 million of capacity and 27 underwriters, is providing a fast route to increase insurance capacity for difficult and hard-to-insure risks.” 

Related News

Worldpay from FIS Helps Crypto Brokers and Exchanges with New Chargeback Indemnification Service from Forter

FIS™ (NYSE: FIS), a global leader in financial services technology... Read more »

bitFlyer Europe and Quazard partner on gamified trading competition

Leading cryptocurrency exchange bitFlyer, is partnering with crypto-... Read more »

Samsung integrates blockchain wallet with Gemini exchange

Samsung is integrating its blockchain wallet with the Winklevoss twins' Gemini app for buying and selling cryptocurrencies.

The Samsung... Read more »

Lockdown alters crypto trading habits - Revolut data

Today Revolut, the Financial Super App with over 10 million customers in the U.K and Europe, reveals figures outlining how the cryptocurrency market has... Read more »

CoinDCX announces US$2.5 million strategic investment from Polychain Capital and Coinbase Ventures

CoinDCX, India’s largest and safest cryptocurrency exchange, has announced that... Read more »

Zumo Rolls out Payment and Exchange Cryptocurrency App for Mass Market

Zumo, an Edinburgh-based mobile wallet and payments start-up backed by Coldplay bassist Guy Berryman, has launched an app that stores, sends and allows consumers to spend and... Read more »

Magazine
ALL
Free Newsletter Sign-up
+44 (0) 208 819 32 53 +44 (0) 173 261 71 47
Download Our Mobile App
Financial It Youtube channel