Lloyd’s of London is the quintessential English insurance company. It holds a legendary status in the financial world because it’s always been a pioneer in all things insurance. Nowadays, the firm is keeping up with its almost mythical reputation by taking in the business of a new industry — the blockchain. Indeed Lloyd’s is one of the world’s companies who are making a pretty penny by ensuring cryptocurrencies.
Nothing is surprising about this. You will always find insurance wherever there are assets. And that’s as true in the crypto-verse as in any other space. The unique thing about crypto is that the value of the cryptocurrency market is way more significant than the amount of insurance available.
The value in digital assets has multiplied by twenty-five over the last three years, so the total market capitalization is about USD 300 billion. Hacker activity has not slowed down, which is normal. Digital crime in the cryptosphere is most active when the value is rising, and the current year has been a profitable year for both legitimate investors and hackers.
The bad guys have gone away with about USD 480 million in stolen tokens so far in 2019. It’s a great new market for insurance companies, and they’re not about to let the opportunity go away unexploited — Lloyd’s least of all.
The fabled insurance firm, which takes its name from the London coffee house where it was born in the 17th century, is an insurance marketplace worth USD 45 billion. Companies can join in syndicates and co-underwrite insurance.
Lloyd’s of London
Lloyd’s famously insured the ill-fated RMS Titanic, a cartoon by da Vinci, and all sorts of other things. Now it’s getting its hands in cryptocurrency insurance, and it’s quickly becoming the leading player in the field. It aided Coinbase with USD 255 million to fund a policy announced back in April. It’s also in charge of BitGo’s custodian USD 100 million policy.
Aon, of Manchester United-jersey fame, who is the world’s largest insurance broker, also from London brokered a policy for Coinbase. Switzerland’s Chubb, another industry giant — the largest insurer in the US who already paid claims related to crypto hacking.
The cryptocurrency security and insurance company known as Coalition, out of San Francisco, already has more than five hundred institutional clients, including exchanges and firms who have issued a proprietary digital asset.
The company’s founding team includes a former CIA analyst, Josua Motta, who serves as CEO, who was also involved in starting Cloudflare up. It’s a digital security company that will go public in the next few weeks and could be valued at USD 3.5 billion. Under Mr. Motta’s leadership, Coalition has 11k customers and premium revenue of USD 50 million, which means recurring fees.
Some experts say that it doesn’t matter how money gets spend as long as it moves around. That’s what makes the global economy grow. In that sense, the cryptocurrency market is already expanding the global economy because it’s an activity, which many consider wild and volatile, is creating economic activity for other industries — the insurance industry in this case.
The fact that insurers are getting involved with crypto is excellent news because it provides an industry, considered to be evanescent by the mainstream, with the physical world. And that is a step towards mainstream adoption.
Disclaimer: The presented information is subjected to market condition and may include the very own opinion of the author. Please do your ‘very own’ market research before making any investment in cryptocurrencies. Neither the writer nor the publication (TronWeekly.com) holds any responsibility for your financial loss.
Never miss our daily cryptocurrency news, price analysis, tips, and stories. Join us on Telegram | Twitter or subscribe to our weekly Newsletter.