Evertas, one of the world’s first cryptoasset insurance companies, has received its licence from the Bermuda Monetary Authority to start operating from the jurisdiction. It will operate as a ‘Class 3A’ insurer.
Evertas’ operations in Bermuda will now aim to start issuing policies for theft or loss of cryptoassets, with a view to securing a rating within three to five years. The insurer is focused on covering institutional holders of cryptoassets, which includes exchanges, custodians, traditional financial institutions, funds, family offices and ultra-high net worth individuals. Evertas will be looking at risks that are complimentary across its carrier partners; it will be working with them to address the dramatic lack of capacity for cryptoasset risks.
Initially, its policies will specifically look at covering the loss and theft of private keys representing the ownership of cryptoassets. These types of losses can result from physical theft, cyberattacks/hacks, social engineering and natural disasters.
Artex Risk Solutions (Bermuda) Ltd will serve as insurance manager and principal representative in Bermuda. Their services will include financial reporting, operational support, treasury and administrative services.
Cryptoassets are a new and rapidly expanding asset class with a total market capitalisation of $300 billion. Due to the highly specialised nature of underwriting the risk associated with crypto assets, there are very few insurers currently operating in this sector. Evertas will offer a complete end-to-end product for cryptoasset insurance from underwriting, to crypto-forensics and claims handling.
J Gdanski, CEO and Founder, Evertas said: “There are many indications of the cryptoasset market maturing rapidly. This includes developments around regulation, the emergence of self-regulatory organisations and of new exchanges, custodians, banks and funds.
Evertas has a unique position in the market for this asset class because we are the only dedicated insurer providing third-party risk insurance with a comprehensive, vetted underwriting framework and in-house claims handling. The previous lack of a full-service insurance company in this market has limited its growth.
“Obtaining our Bermuda licence is a key piece in the jigsaw for growing our business by expanding internationally.”
Raymond Zenkich, President and COO, Evertas said: “We are excited to have our licence to operate from Bermuda. It is a leading global financial centre, and a highly respected jurisdiction with a pool of senior and qualified insurance professionals and an educated workforce.
“Bermuda has established itself as one of the leading and most reputable jurisdictions for the blockchain and cryptoasset sectors. With its business-friendly environment, sophisticated and efficient regulators, cryptoasset and blockchain regulatory framework and strong insurance operations, Bermuda was the ideal choice for our company.”
FURTHER COMMENTARY ON EVERTAS SECURING ITS LICENCE FROM THE BMA
Bermuda Premier David Burt said: “I am exceptionally pleased to see Evertas acquire their license from the BMA and complete their journey started some time ago. They were a company I personally met and sold on the merits of Bermuda early in the development of our Fintech industry. They make a great addition to our developing ecosystem. Their extensive experience in the Digital Asset space is a considerable strength. It lends itself well to understanding the risks of the industry and providing much needed coverage to the Digital Asset Businesses that choose to make Bermuda their home.”
Roland Andy Burrows, CEO of the Bermuda Business Development Agency (BDA), said: “We congratulate Evertas on achieving their licence. The company’s leadership has an in-depth understanding of risk and digital asset technologies having spent a number of years working across both industry sectors. Their decision to choose Bermuda reflects the strength and quality of the jurisdiction and its gold-standard framework for established and emerging global industries, facilitating commercial growth and innovation. We welcome Evertas to the island and look forward to continuing to work together.”
Sandra Ro, Chief Executive Officer, Global Blockchain Business Council and Advisor to Evertas said: “The GBBC works to bring together trusted stakeholders in cryptoassets and blockchain technology to grow and advance a multi-trillion dollar industry in the making. We are thrilled to see GBBC members Evertas and the Government of Bermuda working together to pioneer and develop solutions and services in a much-needed insurance vertical.”
Mike Woytowicz, Director Business Development, International, Artex said: “Artex is pleased to be one of Evertas’ strategic partners as they become the first to provide bespoke insurance coverages dedicated to custodians of digital assets. Both of our companies value innovation and I’m confident Evertas will bring value to customers and the insurance marketplace.”
Susan Joseph, CEO of SusanJosephLLC, a consulting company and Advisor to Evertas said: “The cryptoasset insurance market is small and complex but growing rapidly, and Evertas is leading the way. Securing its licence from the Bermuda Monetary Authority is just the latest example of this.
“There are huge issues to address in the cryptoasset insurance market around risk analysis, underwriting and claims, as well as a number of regulatory points. Capacity levels also need to increase dramatically.
“With its new licence and ability to operate from Bermuda, Evertas is now firmly part of one of the biggest insurance markets in the world. This further strengthens its position to help address the many challenges facing the cryptoasset insurance market.”
Evertas focuses exclusively on cryptoassets, helping clients and insurers understand the risks associated with these and ensuring they are adequately covered.