Crypto and digital currencies seem to the be the plan to replace cash, so that purchases can be monitored and ultimately controlled. For insurers there is an opportunity to insure digital assets, for individuals and companies alike;
Liberty Specialty Markets (LSM), part of Liberty Mutual Insurance Group, today announces the launch of a dedicated product for financial institutions operating in the burgeoning cryptocurrency market.
The product is designed for European crypto-asset service providers, particularly those compliant with the EU’s Markets in Crypto-Assets directive; a framework established to create uniform rules and better protection for investors. Coverage includes risks related to professional liability, management errors, theft and fraud.
Offering limits of up to €3 million, the product will allow LSM to support the range of providers, from traditional banks and asset managers to blockchain startups. It has been developed in response to increased demand from the financial sector, which faces ongoing uncertainty due to rapid macroeconomic, regulatory and technological changes, such as the rise of digital banking and cryptocurrencies.
With more than two decades of experience in the European financial institutions’ insurance market, LSM’s latest product extends its broad existing range, which includes bankers’ blanket bonds, professional liability, D&O and others.
Jorge Chao, head of financial institutions, LSM Europe, said: “The crypto revolution presents significant opportunities, with increasing adoption redefining economic and financial relationships worldwide. The complex risks associated with that are however a major strategic issue for financial institutions. The product announced today has been meticulously created, working with our cyber and technology teams to close knowledge gaps that can hinder crypto insurance propositions, allowing clients to pursue opportunities in the fast-developing crypto market safely.”
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