Coincover, a cryptocurrency insurance company based out of Wales, has expanded the scope of its insurance cover.
According to a report published earlier today by local news medium Whales247, the insurance startup, which holds its headquarters in Cardiff, has now begun covering cryptocurrency theft and loss as part of its insurance cover. Whales247 reported that this is the first time such development is coming to the cryptocurrency space, as it virtually guarantees that customers’ digital funds will never be stolen or lost.
An encompassing security guarantee
The report adds that the Coincover insurance service will perpetually monitor the customer’s wallet, while issuing warnings in the event of suspected theft.
However, apart from running routine checks on the custodial asset service to ensure that no suspicious activity takes place, the service will also manage backing up private keys, provide cash replacements in the event that digital assets are stolen, and also recover the funds in any wallet in case the private keys get lost.
Per the report, the insurance cover currently provides safety for over 100 separate crypto assets, while Coincover itself has also been invited by the Department of International Trade as one of a select few insurance companies to provide their expertise to companies in Silicon Valley.
Speaking on the expansion, David Janczewski, the co-founder of the insurance startup, said
He also touched on the fact that cryptocurrencies have long been linked to thefts and hacks since they gained mainstream attention and saw their values skyrocket. This, in his opinion, is one of the most significant issues that his company is looking to rectify.
When it comes to crypto-insurance, demand trumps supply
The announcement underscores the continued trend of insurance companies hoping to cash in on the increasing demand for insurance by crypto firms and others within the space.
A few weeks back, news medium Forbes reported that the cryptocurrency market is worth about $300 billion, while only about $1 billion in insurance is being made available. As hacks and security breaches of crypto exchanges and other asset custodians continue to increase in prominence, the demand for insurance will undoubtedly keep skyrocketing.
And you best believe that these security breaches have been in abundance. CipherTrace, one of the most popular intelligence and analysis firms in the crypto space, reported that up to $500 million in crypto assets had been stolen in the first half of 2019 alone. Asset custodians and investors are running scared, and insurance companies have been more than happy to cash in on that.
One of these companies is Lloyd’s of London, an insurance marketplace worth about $45 billion, and which provides the opportunity for companies to co-underwrite insurance. Lloyd’s has done pretty well for crypto-insurance, facilitating the $225 million policy announced by Coinbase in April, as well as another policy for crypto custodian BitGo, which is worth $10 million.
Coalition, a San Francisco-based cybersecurity and insurance firm, has clocked over 5,000 crypto companies in its clientele, with exchanges, cryptocurrency developers, and hedge funds in its repertoire. The company has built a client base of over 11,000 in just two years, with premium revenues eclipsing $50 million.