With the cryptoasset and blockchain markets growing rapidly, new research (1) from Evertas, the world’s first cryptoasset insurance company, reveals 88% of senior insurance executives see this market as attractive for insurers over the next five years.
Some 90% of insurance executives expect the level of investment from insurers in their cryptoasset underwriting teams and propositions to increase between now and 2025, with 26% anticipating a ‘dramatic rise’. Overall, during this period, 92% anticipate the level of capacity the insurance sector provides to the cryptoasset market to grow, with 28% expecting a ‘dramatic increase’.
However, Evertas warns that there is a complex interplay of risks concerning cryptoassets and blockchain systems that can lead to a wide range of losses and outages. Its findings reveal that 48% of insurance executives believe they only have a ‘poor’ or ‘average’ understanding of these, and 28% say the sector is not good at keeping abreast of the rapid changes here. Evertas believes the level of knowledge insurers have is much worse than its research findings suggest as the industry has invested little in understanding the cryptoasset and blockchain markets.
Raymond Zenkich, President and COO, Evertas, said: “Our research shows that insurers see the cryptoasset insurance sector as an attractive growth market. However, by providing only around $1 billion of insurance capacity for the sector, insurers have only really been dipping their toe in the water when it comes to insuring crypto and blockchain assets. However, as the sector matures and becomes increasingly accepted by regulators, corporates and governments, the insurance sector’s interest in it will also rise.”
Evertas believes it’s the only company in the world focused solely on providing insurance coverage for cryptoassets and users of blockchain systems. It has a unique offering providing a full suite of services for these assets – from risk audits, to underwriting, investigations and claims handling.