Crypto.com secures $120 million Aon-placed insurance coverage for digital assets

By Isha Marathe

July 1 - (The Insurer) - Cypto.com, a regulatory compliance, security and privacy firm, has secured $120 million total of crime and specie insurance coverage for digital assets custodied by Crypto.com Custody Trust Company, and arranged by Aon.

The insurance coverage, effective since the firs quarter of this year, provides $100 million of coverage for digital assets in cold storage, including coverage of potential incidents involving physical loss, theft or damage to digital assets held in cold storage, as well as $20 million of coverage for potential incidents of crime or third-party theft.

Aon worked with underwriters through Lloyds of London to conduct a thorough assessment of Crypto.com’s risk management protocols.

“At Aon, we are committed to meeting the emerging needs of the digital asset space and ensuring that risks are managed effectively,” said Glenn Morgan, head of digital assets at Aon.

“Designing the right insurance programs will foster the healthy growth of this technology and create more secure and trusted engagements with the crypto economy.”

Willingness among insurers to offer coverage for cryptocurrency is slowly growing, but market penetration remains minimal due to volatility concerns and a lack of actuarial data, AM Best said in its June report.

Several Lloyd's syndicates, including those operated by Arch, Atrium, Beazley and Canopius, as well as traditional insurers including Axa, AIG and Chubb, have begun underwriting crypto risks. Brokers Marsh and Aon have expanded dedicated crypto insurance facilities, with Marsh recently launching an insurance facility for digital asset custodians, including financial institutions, with a capacity of up to $825 million, AM Best said.