As a relatively new technology, many insurers are still in the early stages of understanding all the risks involved to accurately underwrite the exposures. As insurers in this field continue to collate and analysis historical claims data, these comfort levels will likely increase. In the meantime, the process of acquiring digital asset insurance coverage should include a specialist broker who can help their client navigate the markets and underwriting process to obtain the best coverage available for their needs. Buyers of this coverage include cryptocurrency exchanges; asset managers; custodians, crypto miners; payment remittance platforms; and SaaS provider clients.
At Paragon, we are fortunate to have our very own specialist digital asset insurance team who placed the very first crypto crime policy in 2013. Members of our team have designed the majority of the crypto placements in the market and secured the largest hot and warm crime programmes and the largest specie policy for a crypto custodian earlier this year.
It is great to see my colleague, Jeff Hanson quoted in the attached Business Insurance article recently, as we continue to secure pioneering solutions for digital asset-exposed firms.
Jeff Hanson, senior vice president at London-based Paragon International Insurance Brokers Ltd., said he has seen the number of cryptocurrency crime insurance buyers ramp up significantly over the past three years. There are about 25 crime insurance programs that protect cryptocurrency custodians and exchanges where limits of $10 million or more have been purchased, he said.