With the new cryptocurrency industry comes the new trends. Recently, the media reports suggested that the industry is initiating the new trend of crypto-insurance. The first question to answer here is what is the need of insurance in crypto firms?
Need for Insurance in Crypto Firms
Insurance is not a new concept for us however, it has found a new way into the evolving cryptocurrency industry. After the introduction of the cryptocurrency, there have been loads of new developments. Finally, the insurance providers have recognized this new financial industry. Digital coin owners wish to have the protection of their funds from theft, which seems to be an ongoing trend these days.
The reports of scams and hacking in the crypto industry have been increasing every day, increasing the insecurity of the crypto owners. As per the reports, even the crypto exchange platform where most of the trading happens has also been unable to resist hackers. This insecurity in the industry has led the insurance providers to it. So, it is quite understandable why this cryptocurrency industry needs the insurance services.
Where to get the Crypto-Insurance?
Now that we have seen what is the need for insurance in the industry, the next question is from where one can get it? Before today, there were not many companies that deal with the crypto-insurance. Presently, companies like Great American Insurance Group, Mitsui Sumitomo, Chubb, and XL Catlin. These are the companies that cover various cases and possibilities when it comes to insurance.
Impressively, Sumitomo Insurance has a wide package that covers things like employee theft, regular mistakes, and even unauthorized access. Also, a company names Line has also introduced insurance to the users along with the loan service. Not only this but bitFlyer has also joined them on the path of providing insurance to the crypto assets.
Risks Involved In Crypto-Insurance
Besides sounding too good, there are still risks involved. There might be a good chance that insurance companies might fall in for scammers. Adding on, there is also a risk in which the companies might overstate the amount of insurance that they actually need. The crypto-insurance is one of the trendy topics nowadays. However, there is still a lot to do in this industry to make it apt. Although a lot of work needs to be done, still the industry has been showing a great potential and is moving on a right path.