The adoption of cryptocurrencies as valuable assets is a trend that has been increasing. Although this situation was never in the original conception of cryptocurrencies that have only been oriented as a payment instrument between peers, completely separated from central governments and central banks, the possession of these new digital assets of value has of course opened a series of consequences frequently seen on financial markets.
One of these consequences is that cryptographic assets now become susceptible to being insured. Investments in cryptocurrencies as a means of value must also be able to be insured, and this has opened a specific insurance market for this class of assets.
But not everything is limited to the financial market, these insurance extend to all kinds of token tenure. Considering the existence of some risk in the cryptographic market in general, related to hackers, robberies, etc, it is not at all out of place that those of us who possess assets in tokens wish in some way to protect our investments before an event covered by these insurance.
Computer hacking has perhaps been the biggest risk. For example, in February 2018, Coincheck was the victim of hackers who stole $ 534 million in cryptocurrencies.
The eventualities already offered by several international companies range from theft, hacking, to system errors, theft of employees and unauthorized access to platforms and wallets. The appearance of insurance offers in the cryptographic market is something unprecedented and not only in the sense that it has never happened as such, but also in the specialization of this class of products in the concept of the insurance market.
As for the products that the insurance companies are offering for the crypto sector, packages are being obtained that cover a wide range of amounts, from $ 88.50 to $ 8,850,000. Some insurance companies are combining their current services with cryptographic assets and corresponding insurance packages to provide a more extended variety.
Among the companies that are beginning to operate with this type of insurance products we can mention among others a XL Catlin, Mitsui Sumitomo Insurance, Great American Insurance Group, Chubb, incusive the Line messaging platform who besides providing messaging services and crypto trade , they are also offering loan and insurance services for their clients, and also in Japan the company bitFlyer, a company that offers insurance packages for any transaction related to Bitcoin.
Although it has been understood the importance of commercial activity around cryptocurrencies and the market that this generates, it is no less true that there are risks in the sector, even for the insurance companies themselves.
Unfortunately, there are often companies that offer wonders through ICOs and then disappear altogether taking the investors’ money with them, or simply fail to meet their objectives and go bankrupt, leaving investors without their money. The first are those that can deceive the insurers, so they must avoid offering insurance to any type of crypto companies without having covered a minimum of requirements that are cleared in a due diligence to determine the viability of those projects and their insurability.
The blockchain sector in full is an insurable field and this has been understood by many companies in the insurance sector, so we can talk about blockchain insurance.
The most important of all this is that there is a growing awareness of the growth of the cryptographic market and the development of cryptoeconomics as an unavoidable and quantifiable economic fact.