Cryptocurrency Insurance Against Hacks Offered By BlockRe Companybr>
The top ten cryptocurrency hacks have resulted in an estimated $1.5 billion in digital assets being stolen. Custodians and exchanges are “sitting ducks,”erasing mainstream crypto confidence and value.
Enter BlockRe, which is providing specialized insurance products designed for crypto exchanges. Nearly every exchange or custodian doesn’t offer insurance, but BlockRe assists in providing full audit of crypto-related trading operations, risks, processes, procedures and the greatest areas of risk, including incident tracking and kidnapping.
BlockRe president and COO Raymond Zenkich answered a few Block Tribune questions.
BLOCK TRIBUNE: What will the policies cover?
RAYMOND ZENKICH: Theft or loss of private keys.
BLOCK TRIBUNE: How will such coverage be priced?
RAYMOND ZENKICH: This is dependent on a several factors such as limits required, custody approach, regulatory/compliance framework, customer types (e.g., retail vs. institutional), and overall risk profile so it’s difficult to give a general answer
BLOCK TRIBUNE: Is there a coverage minimum?
RAYMOND ZENKICH: Yes, $10,000,000 USD for enterprise accounts
BLOCK TRIBUNE: What exchanges are eligible for coverage?
RAYMOND ZENKICH: We will evaluate all exchanges that can meet our coverage minimum.
BLOCK TRIBUNE: What are the biggest vulnerabilities in most exchanges?
RAYMOND ZENKICH: (1) Lack of a loss prevention culture (i.e., processes, procedures and controls that are designed (and tested) with outlier cases in mind) and (2) misplaced belief that typical business insurance policies will cover losses.
BLOCK TRIBUNE: When will this program start?
RAYMOND ZENKICH: Q2 2019
BLOCK TRIBUNE: Will you cover exchanges in specific countries?
RAYMOND ZENKICH: We’re addressing the global market.
BLOCK TRIBUNE: What is your criteria for coverage?
RAYMOND ZENKICH: Primary criteria is that the insured is comfortable participating in our holistic underwriting process which, for larger limits and at the most detailed levels, include looking at operational procedures, physical security, cyber security, and business practices