Cryptocurrency Insurance Could Be A Big Industry In The Future

As cryptocurrency markets mature, they are attracting players from other industries. The insurance industry is one them. 

According to a Bloomberg report, cryptocurrency insurance is poised to become a “big opportunity”. A spokesman from Allianz, one of the world’s biggest insurers, told the news publication that the company was exploring product and coverage options in the space because cryptocurrencies were “becoming more relevant, important, and prevalent on the real economy.” 

Why Does The Cryptocurrency Ecosystem Need Insurance? 

Currently, the cryptocurrency business, which mostly consists of startups and exchanges, is not big enough to provide substantial revenues for the insurance industry. Based on publicly available information, even North America’s largest cryptocurrency exchange Coinbase holds only 2 percent of its coins insured with Lloyd’s of London. These coins are held in hot storage (or are connected to the Internet). The rest are…