Breach places industry-first crypto insurance policy
Boston-based insurtech start-up Breach has placed an industry-first, crypto-denominated cyber insurance policy with CoinList, a full-service token sale and crypto trading platform.
Issued in partnership with Nayms, a UK-based insurtech for collaboration between brokers, underwriters and capital markets, the policy covers electronic theft and phishing risk, with collateral denominated in bitcoin using open-source software supported by MakerDAO.
“CoinList has been the premier platform to connect early adopters with high quality token projects. As those projects have matured, CoinList has naturally evolved to support those projects and their backers through our spot exchange and mobile wallets which demand sophisticated risk management solutions. Yet, despite the high demand for crypto insurance products, the market is still nascent and rudimentary. We are excited to partner with Nayms and Breach to use the MakerDAO open-source software suite to build out and scale insurance and re-insurance solutions suitable for our sophisticated partners,” said Scott Keto, COO of CoinList.
The policy was inspired by a well-documented shortage of re/insurance capacity available to crypto risks and the growing need for the insurance industry to identify complementary sources of re/insurance capacity and collateral. The partnership with Nayms allows Breach to cover complex crypto risks at scale, similar to solutions that cover traditional catastrophic risks in the P&C and Surplus Lines markets.
“At Nayms we are building the bridge between capital and risk for Digital Assets. That bridge is a regulated environment, using key technologies adopted by sophisticated entities. Breach are one of those entities, with a strong solution that will, in partnership with Nayms, enable scalable cover for this emerging risk class” said Dan Roberts, Co-Founder and CEO of Nayms.
Breach is a cyber insurtech with an exclusive focus on crypto risks. Although decentralized insurance protocols are gaining popularity in the crypto space, Breach is instead placing an emphasis on developing creative, regulated insurance solutions that leverage partnerships with top-rated re/insurers and re/insurance brokers.
“It’s no surprise that crypto markets have historically been perceived as risky. It is very challenging to hedge against the variety of risks bitcoin presents – nascent, novel market structures and new types of operational risks presented by a purely digital asset that settles with finality require new approaches to insurance. The launch of this new product from Breach will bridge traditional financial insurance products with the latest in cybersecurity to bring trust and protection to digital finance” said Meltem Demirors, Chief Strategy Officer of CoinShares.
Breach CEO, Eyhab Aejaz, said in a statement: “As regulated insurance options for crypto risks continue to lack innovation and are generally un/under-served, Breach is grateful for the opportunity to serve the needs of the crypto market, including retail and institutional investors, custodians, exchanges and technology companies, amongst others. The insurance industry lacks deep crypto expertise, while the crypto industry lacks deep insurance expertise, so we fit a significantly important niche and are quite excited about it.”