Lloyd’s Of London
Lloyd’s of London has just stepped up to the plate and is now fighting against the theft of Cryptocurrencies. This is wonderful news for the industry and for investors alike.
The news release which came out this week highlighted how Lloyd’s of London is offering cover – in terms of insurance – for those wanting to protect their tokens and Cryptocurrencies. Once such group is “Kingdom Trust” which has gladly put its trust into underwriters within the Lloyd’s market. Kingdom Trust was very keen to set up such a relationship to ensure that its 30 Cryptocurrencies and tokens were looked after as much as possible. The company is a qualified custodian and therefore has a lot to lose if anything happens to the private keys of the 30 Cryptocurrencies it looks after. The firm is responsible for not only individual investment but also that of institutions too. And because of this, it must operate under strict regulations to ensure its clients are looked after in the best manner possible. Reducing risk is very much the name of the game.
The Insurance Industry
Although it has taken a while for the insurance industry to take that brave and bold move into the digital economy, there are slow movements forward now. There are reports that AIG, XL Catlin, Chubb and Mitsui Sumitomo Insurance in America are already working in the field but there have been no large announcements. The same can be said for Lloyd’s which is also keeping a very low profile regarding its latest deal. There was certainly no official press release and no confirmation of the companies involved.
Furthermore in the past, Lloyd’s of London has already been in touch with all of its syndicates and advised them to take extra care when entering into the Cryptocurrency industry. Lloyd’s firmly highlighted that even agents needed to be extremely sure before making any uninformed decisions.
Experts in the field are pretty sure that this is the first of many entrants into insuring in the digital economy. There are two sides to the camp: Those that are seriously interested and feel confident that they have the knowledge and expertise: Those that are keen but are still gleaning the necessary information to develop their policies and take the leap.
In The Future
This move from Lloyd’s has been a vital development for both the insurance and the Cryptocurrency industry. The next stage would be to secure the best storage system and then one and all can enjoy the reduced costs.
There are many – just like Lloyd’s – on the cusp of entering the Cryptocurrency industry and investors are awaiting the dam gates opening. Those in the industry are also eagerly awaiting the American Securities and Exchanges Commission to begin issuing broker dealer licenses for the digital economy specifically. Something which is on the verge of happening too.
We have come a long way over the last few months with regulation and now insurance for the Cryptocurrency industry. Here’s hoping the hacking and scam incidents and reports soon start disappearing as fast they arrived.