Evertas, the world’s first cryptoasset insurance company, is warning that many insurers “don’t have the data, expertise, or knowledge” to effectively manage claims concerning cryptoassets and blockchain.
Evertas said the claims are often highly complex and cut across multiple fields that require specific cryptoasset and blockchain knowledge as well as tools that are difficult for insurers to acquire or develop internally.
It comes after Evertas said it believes there is less than 0.5% of capacity in the global insurance market to cover the value of cryptoassets. According to Evertas, the global insurance industry only has a capacity of about $1bn (£816m) to insure cryptoassets.
It added this is because of the small size of the cryptoasset market compared to other sectors and a lack of underwriting expertise.
J Gdanski, CEO and founder, Evertas said: “The insurance industry has already found itself unable to deal adequately with claims linked to ransomware, and losses concerning cryptoassets and blockchain are significantly more complex.
“There are a number of areas to address when it comes to how the insurance industry underwrites cryptoassets and the policies it offers, as well as how to manage claims for these assets. If a loss were to occur at an exchange with sophisticated security, it is likely that the insured will have greater depth of skills in investigating this than the insurance company itself.”