Question of centralization faces growing crypto insurance industry
Cryptocurrency insurance is expected to be a big business: Will it be centralized or decentralized? Cryptocurrency markets have been maturing over the last few years, making demand for crypto insurance solutions larger as more advanced players dip their toes into the nascent ecosystem.Investopedia reports that cryptocurrency insurance is seen as a “big opportunity,” with a spokesman from one of the world’s largest insurers, Allianz, saying that the company has explored product and coverage options in the cryptocurrency space as it becomes “more relevant, important and prevalent on the real....
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The insurance industry is over two hundred years old and it has evolved into a vital component of the global economy. The demand for insurance has grown by more than 130 percent over the last decade and is now a staggering $5.5 trillion industry. With new businesses and opportunities coming to life, the demand is unlikely to cease. Likewise, one industry where the demand for insurance is growing at a rapid pace is crypto and DeFi. Despite the rising demand for insurance, today’s fragmented financial infrastructure faces significant challenges. Over 97% of cryptocurrency assets are not....
Can a disruptive technology like Bitcoin ever be insured,' wonders Innovative Insurance Group President Ty Sagalow. In one of his recent blogposts, the insurance veteran referred to Bitcoin as "a new risk in the technology space", saying that the insurance industry will have to create new underwriting techniques and protocols if it wants to cater to the digital payment industry. To make things more clear, he exemplified the famous "Y2K crisis" in the late 90s that had insurance industry writing new rules for insuring technology. "So we created "Y2K insurance" and made it available only to....
The blockchain technology has now entered the insurance sector, making it possible for the insurance companies to offer policies to suit the customers' needs. The use of blockchain technology in insurance sector is something relatively new. London, the fintech destination of Europe is the first one to explore the potential uses of distributed technology in the insurance industry. The Capital of England already has a couple of companies who have already implemented it into their offerings. The blockchain is known for its transparency, security, immutability and reliability. All the....
Crypto insurance is becoming more important as investors and crypto companies look to secure their digital assets. Insurance is key for financially securing important assets. Yet, the cryptocurrency sector — which is predicted to reach a global market size of $4.94 billion by 2030 — may be lagging behind when it comes to insuring digital assets. For instance, it’s been noted that less than 1% of all crypto investments are currently insured. This statistic is alarming, considering the rapid growth and high-risk profile associated with today’s cryptocurrency market. Ben Davis, team lead for....
Faced with the growing need to justify the fees, delays, chargebacks and centralization of power that are behind modern fiat currencies, one argument that Bitcoin detractors are turning to more and more to attack the alternative is that Bitcoin is uninsured. As Forbes writer Tim Worstall writes, for example, "Sure, it's true that real world banks (which is a useful analogy for Bitcoinica) get robbed all the time and this doesn't stop people using bank notes. But banks are backed up by governments: everywhere has deposit insurance. So, if some robber were to make off with all of the cash....