Cryptocurrency News Crypto Insurance Lloyd's 29 Aug 2018
Lloyd’s to offer insurance against crypto theft, as the underwriters in the company have expressed a heightened interest in the digital asset market. Kingdom Trust will provide the service for both institutional and individual investors.
29 August, AtoZ Markets – Lloyd’s of London has reportedly moved to provide the cover against the theft of cryptocurrencies. The so-called Kingdom Trust has been introduced this Tuesday.
Kingdom Trust is a qualified custodian of 30 cryptocurrencies and tokens. It aims to advance its safe-keeping services with insurance cover for theft and loss due to a natural disaster. Kingdom Trust appears as a courtesy of underwriters in Lloyd’s market.
The initiative from the Kingdom Trust implies that it will safeguard the private keys of troves of cryptocurrencies to a standard that is appropriate for regulated financial institutions.
The CEO of Kingdom Trust, Matt Jennings, has stated:
"We serve both institutional and individual investors by providing qualified custody, which gives our clients the framework they need to ensure compliance with their regulators using clear and transparent reporting."
As a matter of fact, the insurance sector is becoming more interested in providing cover for properly custodied digital assets. In the US, AIG, XL Catlin, Chubb and Mitsui Sumitomo Insurance have already been mentioned to have some crypto initiatives in progress, yet, they are keeping a low profile.
Lloyd’s is also not providing many details in regards to its new project. Lloyd’s is a legal umbrella of groups of syndicated spreading risk across the market. The corporation did not comment on whether its managing agents may offer crypto theft cover.
What is reported by some of the online media outlets is that the brokerage who arranged the Kingdom Trust’s cover is the Illinois-based Safe Deposit Box Insurance Coverage (SDBIC). It has stated that it is likely there will be a bit of uncertainty in the market regarding the crypto asset class.
Lloyd’s of London has issued a directive to all its syndicates earlier last months. The directive has warned the groups of companies to exercise caution in regards to crypto assets. The company also highlighted that it is necessary to ensure that managing agents possess the required expertise in the underlying risks.
The president of SDBIC, Jerry Pluard, has stated the following:
"About 10 syndicates in Lloyd's have indicated a willingness and are somewhat active in evaluating crypto exposures. Of those 10, I would say there are five that have the level of expertise that allows them to be comfortable enough to do the analysis and underwriting of the risk, and then the other five will follow on with those leads in writing exposure."
Additionally, Mr. Pluard has stated that there is the other set of syndicates in London that are looking into the crypto market, but "haven't really jumped to put a policy of paper in place."
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