American crypto asset insurance company Evertas has received approval to become a coverholder at Lloyd’s of London.
As a Lloyd’s coverholder, Evertas will be able to expand access to crypto-insurance offerings and provide insurance capacity to crypto asset investors.
Evertas, which is the first Lloyd’s coverholder to cover digital wallet products, noted that currently, only 2-3% of global crypto assets are insured.
Evertas will leverage its knowledge of crypto asset risk to write policies on behalf of Arch Insurance, a Lloyd’s syndicate member, which sponsored Evertas’ coverholder application.
Evertas CEO J. Gdanski said: “Our appointment as a Lloyd’s coverholder represents a vital new development for the crypto industry. The lack of insurance capacity plaguing this sector has hindered growth and liquidity by keeping many institutions from entering the market.
“The addition of the new capacity, which Evertas will offer as a Lloyd’s coverholder, will go down as an important milestone in the history of crypto.”
Gdanski added that the insurer will work towards forming new relationships with new insurance carriers and Lloyd’s syndicates.
Lloyd’s Americas regional director and president Hank Watkins said: “Our approval of Evertas’ coverholder application is an example of collaboration between Lloyd’s insurer Arch, Lloyd’s broker Marsh and their new distribution partner on an innovative solution aimed at facilitating the growth of an industry sector previously hindered by a lack of risk transfer options.”
Due to the rise in incidents where hackers have targeted crypto exchanges, the digital asset insurance market has been gaining popularity.