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HomeNewsResearch shows Insurance Industry Has Massive Knowledge Gap of Digital Assets

Research shows Insurance Industry Has Massive Knowledge Gap of Digital Assets

Cryptoasset Insurance Company, Evertas says there is a serious problem of ‘phantom’ knowledge of digital assets from insurers.

New research conducted by Evertas amongst senior insurance executives reveals:

  • New research reveals 68 per cent of senior insurance executives believe the quality of underwriting of cryptoassets within the industry is good. Similarly, 76 per cent believe the pricing of insurance cover for cryptoassets is strong, and 42 per cent say the claims process is good or excellent
  • Evertas says although its research reveals senior insurance executives believe the insurance sector has a good understanding of the risks around cryptoassets and that underwriting, pricing and claims are effective, the reality is they are not.  Proof of this can be found in the market’s woeful lack of capacity for the cryptoasset and blockchain markets

J Gdanski, CEO and Founder of Evertas, said:

“Cryptoassets and blockchain systems involve multiple disparate technologies and a range of risks including cyber, regulatory and fraud that are unlike any other market.  Although our findings reveal that senior insurance executives believe the sector has a good understanding of the risks around cryptoassets and that underwriting, pricing and claims are effective, the reality is they are not.  Proof of this can be found in the market’s woeful lack of capacity for the cryptoasset and blockchain markets.

“However, there is little doubt that the market capitalisation of cryptoassets is growing rapidly and that it represents an exciting opportunity for insurers and brokers. Their challenge is to build the knowledge and expertise needed in-house – although this can be expensive and take a long time – or partner with specialists in this area like us.”

The company has been engaging with several insurers and brokers on the issue of insuring cryptoassets and has found many wrongly claim to have a good understanding of the risks associated with these assets, and mistakenly believe that the sector’s underwriting and pricing in this area are strong.

Evertas commissioned the market research company Pureprofile to interview 50 senior insurance executives (25 were based in the UK and 25 in America) on their views on the cryptoasset and blockchain insurance sector.  Interviews were conducted online during April 2020.

Evertas argues that with a global capacity of just $1 billion to $2 billion from insurers for a market that is worth over $250 billion, and with no dedicated underwriting or claims teams, they hugely overestimate their level of understanding of cryptoassets and the quality of service they provide to this market.

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.

Founded in 2017, Evertas has a world-leading team led by an experienced group of executives including the founding Chief Insurance Officer (and founding member) of Lemonade, a blockchain team leader at Bank of New York, and a blockchain industry insurance expert. The founders have over 40 years of combined experience in the insurance sector, and more than ten in the crypto and blockchain markets.

Earlier this year, Evertas received its licence from the Bermuda Monetary Authority to start operating from the jurisdiction.  It operates as a ‘Class 3A’ insurer — a type of small commercial insurer whose percentage of unrelated business represents 50%per cent or more of net premiums written or net loss and loss expense provisions and where the unrelated business net premiums are less than $50 million.  Class 3A insurers are required to maintain minimum capital and surplus of $1 million.

Evertas has a world-leading team led by an experienced group of executives including the founding Chief Insurance Officer (and founding member) of Lemonade, blockchain team leader at Bank of New York, and a blockchain industry insurance expert. Their backgrounds bring together an unrivalled cryptoasset/technology expertise with pragmatic and practical insurance industry expertise.

The founders of Evertas have over 40 years of combined experience in the insurance sector, and more than ten in the crypto and blockchain markets.

Richard Kasteleinhttps://www.the-blockchain.com
In his 20s, he sailed around the world on small yachts and wrote a series of travel articles called, 'The Hitchhiker's Guide to the Seas' travelling by hitching rides on yachts (1989) in major travel and yachting publications. He currently lives in Groningen, the Netherlands where he has set down his anchor to raise a family and write. Founder and publisher of industry publication Blockchain News (EST 2015) and director of education company Blockchain Partners (Oracle Partner) – Vancouver native Richard Kastelein is an award-winning publisher, innovation executive and entrepreneur. He has written over 2500 articles on Blockchain technology and startups at Blockchain News and has also published in Harvard Business Review, Venturebeat, Wired, The Guardian and a number of other publications. Kastelein has an Honorary Ph.D. and is Chair Professor of Blockchain at China's first blockchain University in Nanchang at the Jiangxi Ahead Institute software and Technology. He has over a half a decade experience judging and rewarding some 1000+ innovation projects as an EU expert for the European Commission's SME Instrument programme as a startup assessor and as a startup judge for the UK government's Innovate UK division. Kastelein has spoken (keynotes & panels) on Blockchain technology at over 50 events in 30+ cities.
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