Recently, BitGo announced it will be offering “the industry’s most comprehensive insurance protections for cryptocurrencies and digital assets held in their Business Wallet and Custody offerings.” The new protection will offer insurance for the custodial assets of BitGo, Inc. and the BitGo Trust Company, through Lloyd’s, for up to $100 million.
“This is the most complete insurance offering in the industry. It is not always easy for some clients to understand under what circumstances their investments are insured and to what extent their loss would be covered. We are changing that by being more transparent than any other company about the terms of our coverage. Transparency and accuracy is essential for building trust in the market,” said Mike Belshe, CEO of BitGo.
The insurance protects against third-party hacks, insider theft and physical loss or damage, according to the company. “We have been working hard to tailor a bespoke insurance product for BitGo, in this new, rapidly developing and complex sector. Following a thorough review of BitGo’s security and controls we are delighted to have delivered an innovative solution that enables our client to develop and grow its business with confidence and security,” said Nicholas Edwards, Head of Fine Art & Specie, AmTrust at Lloyd's.
National Association of Insurance Commissioners Offer Insights Into Blockchain and Insurance
The NAIC Center for Insurance Policy and Research is offering a program aimed at exploring the relationship between blockchain and insurance. The upcoming event will take place on April 8 at the NAIC Spring National Meeting in the JW Marriott Orlando, Florida. "The Future of Blockchain in Insurance" program will be immediately followed by a reception, according to promotional materials for the event.
“Blockchain is a fast developing technology that is expected to have a significant impact across the entire insurance sector. Insurance incumbents and InsurTech start-ups alike are attempting to use blockchain technology to reduce fraud, streamline payments and claims, track medical records, and more,” the materials read. “However, blockchain technology is still in its very early stages of adoption and has a number of challenges it must overcome prior to being widely implemented. As such, a number of blockchain consortia have been formed to help promote the adoption of blockchain technology.”
Introductory remarks will be made by NAIC President & Maine Insurance Superintendent Eric Cioppa. Then, a presentation of the evolution of blockchain and a panel discussion will follow. The panel will be moderated by Andy Beal, NAIC chief operating officer and chief legal officer. Panelists include: Christopher McDaniel, Michael Pieciak, Richard Magrann-Wells and Robin Westcott.
Streamlined Info for Investors Offer Clarity for Investors
Insurance offerings are not the only means of protection for those interested in new forms of investment. The Securities Investor Protection Corporation (SIPC), a non-profit corporation designed to protect against failing brokerage firms, launched a new website to make gathering relevant information clearer and easier.
“SIPC is committed to making sure investors know where to turn in the event their brokerage firm fails and their assets are missing,” said SIPC President and CEO Stephen P. Harbeck. “Our new website makes this information more accessible and easier to understand for investors, brokerage firms, legislators and financial services professionals.”
The new website is located at www.SIPC.org.