Demystifying Crypto: the insurance opportunities and challenges

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Crypto is becoming more mainstream, with implications across financial services. Where crypto meets insurance, progress has been slow – in large part due to a lack of understanding between the insurance industry and the crypto ecosystem. 

Demystifying Crypto: the insurance opportunities and challenges, a new report from InsTech London, has been designed to inform readers about the opportunities and challenges of crypto in relation to insurance, while being accessible to audiences new to crypto or new to insurance.

Demystifying Crypto: the insurance opportunities and challenges is available to download now from our Reports page

Introduction from Henry Gale, Research Analyst at InsTech London

The crypto market began in 2009 with the launch of Bitcoin. The total market capitalisation of all crypto assets now exceeds $2 trillion. Cryptocurrency uptake is increasing among the public and institutional investors. Estimates of the number of people owning cryptocurrency range from 100 million to over 300 million. Institutional asset managers hold $70 billion of Bitcoin.

This new market is disrupting financial services and creating new opportunities for the insurance industry. New forms of insurance coverage and use cases for cryptocurrency as an alternative form of insurance capital are being developed.

The insurance industry’s increasing interest in crypto assets is reflected in the choice of crypto as a theme for the seventh cohort of the Lloyd’s Lab innovation programme (September–November 2021). 

Brokers Marsh and Aon have both sold policies to large crypto businesses. Lloyd’s syndicates Atrium Underwriters, Arch Insurance and Canopius are underwriting policies. Many in the broader industry are curious but not yet involved.

The insurance industry lacks knowledge about crypto, and the crypto ecosystem lacks an understanding of insurance, which has held back crypto insurance innovation so far. 

This report is intended to bridge the gap between crypto and insurance by explaining relevant concepts and unpacking where crypto and insurance overlap. 

Throughout, we have provided examples of companies already active in the space for context. The report concludes with insights from the front line: perspectives from an insurer, an investor, and a lawyer on the state of crypto insurance today and where it is going next.

You can download a copy of the report now from our Reports section

Live Chat - Demystifying Crypto: the insurance opportunities and challenges

To coincide with the launch of the report, we are hosting a Live Chat at 2pm on Tuesday 2 November looking at the state of crypto insurance today and where it is going next.

Matthew Grant, Partner at InsTech London, will be joined by InsTech London Research Analyst Henry Gale, Insurtech Gateway CEO Richard Chattock and investor and consultant Will Brocklebank to discuss the most recent crypto trends and developments. 

You can register to join us on our BrightTALK channel