![\"Insurance](\"https:\/\/cdn-res.keymedia.com\/cms\/images\/us\/018\/0248_637183021214561415.jpg\")
<\/figure>\nThere\u2019s a tremendous lack of capacity in the insurance sector for cryptoassets, according to the world\u2019s first cryptoasset insurance company.<\/p>\n
Cryptoasset insurer Evertas believes there is less than 0.5% of capacity in the global insurance market to cover the value of cryptoassets. According to Evertas, the global insurance industry only has capacity of about $1 billion to insure cryptoassets. The company said that the lack of supply was driven by three factors: the relatively small size of the cryptoasset market compared to other sectors, a lack of underwriting expertise, and blanket mandates not to write insurance policies in the crypto space.<\/p>\n
\u201cThe current cryptoasset market is currently worth around $300 billion, and the premium market here is incredibly small when compared to other, more mature products,\u201d said J Gdanski, founder and CEO of Evertas. \u201cSimply said, this market is too small for large, established carriers to develop and deploy full-time teams. However, some insurers are dabbling in the market to monitor the sector and the premium rates available.\u201d<\/p>\n
Gdanski said that a lack of underwriting capabilities in the space meant that many insurers weren\u2019t able to adequately translate the risk for their underwriting teams.<\/p>\n
\u201cUnderwriting cryptoassets requires an extensive understanding of unique crypto-specific areas such as private key storage\/custody, key generation\/management, and blockchain networks, which must be examined with an eye to the unique and specific threat vectors that exist with cryptoassets,\u201d Gdanski said.<\/p>\n
Gdanski also said that early negative reports associated with cryptocurrencies have also led some carriers to refuse to consider any risk related to cryptoassets. However, Evertas said that insurers\u2019 views on the subject are beginning to change as governments actively evaluate cryptoasset-oriented financial products.<\/p>\n
\u201cProjects like Facebook\u2019s Libra digital currency and China\u2019s CBDC continue to highlight the drive toward digitization,\u201d said Raymond Zenkich, president and COO of Evertas. \u201cInsurance capacity will need to follow to meet the growing relevance of cryptoassets.\u201d<\/p>\n<\/p><\/div>\n