Cryptoasset insurance company Evertas, formerly doing business as BlockRE, say adoption of crypto and blockchain in general is being held back by lack of a “robust insurance market.”
The company cites a survey that claims just over half (55%) of insurance executives it interviewed believe companies were holding back on developing blockchain initiatives and digital assets because they couldn’t insure their activities. Only one in five (20%) of those interviewed disagreed with this view.
Additionally, 87% of insurance executives fear a lawsuit due to a loss linked to thefts etc.
Tellingly, 35% of insurance executives interviewed said they thought there was a ‘high’ chance of cryptoasset or blockchain related insurance claims being rejected because the risks involved were not properly assessed or recorded when insurance was taken out.
In brief, the unknown heightens the risk. Of course, this is where Evertas sees an opportunity to provide cryptoasset insurance.
Raymond Zenkich, President and COO, Evertas says:
“Cryptoassets are increasingly becoming mainstream. This trend will be further fueled by more traditional and illiquid assets being tokenized, making it easier to trade and invest in them. There is increased use of smart contracts for owners and investors in these assets to interact with counterparties, and increased acceptance of blockchain as core infrastructure across industries to record ownership, provide an audit trail, and unlock completely different business processes and applications. However, for this market to really reach its full potential, it must be supported by a viable insurance market. This is an exciting business opportunity for the insurance industry. Clients will increasingly expect them to understand the risks associated with cryptoassets and blockchain, and to provide them with relevant cover.”