Aon, one of the world's largest insurance brokers, has formed an insurers group to develop a cryptocurrency insurance solution for customers of Metaco, a company engaged in digital asset storage technologies.
The group consists of mostly European insurers and will offer a crime insurance product to institutions using Metaco’s SILO solution for hot and cold wallets. According to Aon, the policies cover losses on everything from natural disasters destroying the private keys kept offline in cold storage to third-party hacks of hot wallets connected to the internet. It did not disclose the dollar amount of coverage available.
Insurance is a rather rare phenomenon on the crypto market, especially in the custodial niche. Nevertheless, the industry is gradually responding to demand and is already offering cold storage insurance, which is similar to storing bullions or cash in vaults. That demand is indirectly driven by banks and other financial institutions interested in holding digital assets, said Jacqueline QUINTAL, financial institutions practice leader at Aon Risk Solutions.
Image courtesy of Insurmarket