Several of the largest brokers have developed a considerable bench. For example, Marsh has a Digital Asset Risk Team (DART);[1] Lockton has its Lockton Emerging Asset Protection Team (LEAP)[2] and Aon and others have their own teams.[3]
There are multiple advantages to procuring cryptocurrency insurance through brokers that have deep experience in this particular area of insurance. These may include:
- Access to markets—especially overseas markets like London.
- Assistance in the design of cryptocurrency insurance programs. For example, there are public reports of Marsh working with Arch in covering $150 million in digital assets secured by the Ledger Vault Security Firm,[4] as well as its work with Munich Re for Curv.[5]
- Assistance sorting through the array of insurance companies offering products. Much like businesses have their own risk profile, so do insurers and insurance is only as good as the insurer; brokers can provide valuable assistance in sorting through the array of potential insurers and helping policyholders to select those with appropriate experience, balance sheets, ratings and other factors to maximize the fit.
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This is the sixth post in the Blog’s Digital Asset Insurance Coverage series.
This post is an excerpt from an article written by Scott DeVries, Jessica Cohen-Nowak and Adriana Perez that originally appeared in the Journal on Emerging Issues in Litigation published by Fastcase Full Court Press, Volume 2, Number 4 (Fall 2022), pp. 255 – 276 (a comprehensive list of all references is provided in the published journal version).
[1] Blockchain and Digital Asset Risk Transfer Insurance Solutions, Marsh, https://www.marsh.com/us/services/financial-professional-liability/products/digital-risk-management.html (last visited July 11, 2022).
[2] Ryan Smith, Lockton launches emerging asset protection team, Insurance Business (Oct. 14, 2021), https://www.insurancebusinessmag.com/us/news/breaking-news/lockton-launches-emerging-asset-protection-team-313165.aspx.
[3] Financial Institutions Practice Cryptocurrencies, Other Digital Assets & Blockchain, Aon, https://www.aon.com/industry-expertise/financial-institution-risk-management/digital-assets-and-blockchain.jsp (last visited July 11, 2022).
[4] Miranda Wood, Marsh, Arch insures $150m of digital assets for Ledger Vault, Ledger Insights (Nov. 14, 2019), https://www.ledgerinsights.com/ledger-insures-digital-assets-150m-marsh-arch/.
[5] Blockchain and Digital Asset Risk Transfer Insurance Solutions, Marsh, https://www.marsh.com/us/services/financial-professional-liability/products/digital-risk-management.html (last visited July 11, 2022).