Syndicate, insurtech and reinsurer seal digital wallet cover
4 July 2022
International digital trading specialist Amber Group has secured insurance cover for clients holding digital assets using its wallet infrastructure.
Singapore-based Amber, which works with companies ranging from token issuers, banks and fintech firms, to sports teams, game developers, brands and creators, says the cover brings “greater trust and legitimacy to this space”.
“The global crypto market is expanding exponentially but the rise of cybercrime incidents in the crypto space is still a major concern for many investors,” Amber CEO Michael Wu said.
The cover has been provided by Arch Syndicate 2012 at Lloyd’s and insurtech OneDegree, with Munich Re providing reinsurance.
Two years ago Munich Re provided up to $US50 million ($73.31 million) cover for the digital assets held by crypto finance firm Curv in its institutional digital asset wallet service.
The “cold wallet insurance” provided for Amber Group is the first digital asset reinsurance case in Asia for Munich Re, which plans to take over $US100 million ($146.56 million) in insurance coverage.
Amber also has protection against fraud, loss and theft via Coincover’s insurance-backed Theft Protection detection technology.
OneDegree launched its digital asset insurance in November and says it is bridging a gap in available cover.
“The blockchain and digital asset market is expanding exponentially and there has been a strong demand for insurance to protect against threats to digital assets – but only less than 1% of such demand has been satisfied so far,” the insurtech said in a statement.
“Our proprietary cyber security solution Cymetrics and reinsurer partner Munich Re has given us a strong edge to serve the digital asset and broader web3 community with enhanced security and trust.”