Insurance Companies Getting into Crypto Coverage as Hackers Become Shrewder
Some potential cryptocurrency traders are reluctant to trade in the market due to fears of losing their investments to hackers. Therefore, insurance companies have come up with crypto insurance policies that are now starting to gain some news headlines in the crypto world after recent suspicious actions have taken place by Hackers.
Frequent Hacking Events
Crypto Investors have been losing their investments to hackers. And as the field grows, hackers become shrewder in attacking the crypto exchange platforms. Some hacks reportedly occurred a few weeks apart; the hacks involved Bithumb and Coinrail.
According to news reports, cyber insurance has become a multi-billion business. And, in 2018 hackers are becoming even business.
Although insurance companies are providing insurance policies against crypto investing threats, they charge high premiums which can be up to 5% of the annual limit.
Some companies have considered hacking activities on the crypto space as opportunities for business growth. Allianz, is one of the companies that seized the opportunity to start proposing insurance services against crypto hacking.
According to a spokesperson at Allianz, they are providing insurance services to the cryptocurrency investors because virtual assets are becoming more common.
Other big insurance companies including AIG, Mitsui Sumitomo Insurance, Chubb and XL Group are getting into the crypto insurance business. And, according to some reports, Lloyd’s of London could be studying the possibility of getting into the business.
The willingness of some insurers to cover the crypto space can pave the way for cryptocurrencies to become more prevalent among investors, and it could help stabilize the crypto market.