Lloyd Insurance Group launches crypto-insurance service

A United Kingdom insurance group has concluded plans to start offering crypto-insurance services in the UK. Lloyd will provide insurance services that will enable crypto holders to gain back their losses from hacking attacks

As the European trade talks begin today, several financial institutions operating in the UK are concerned about the outcome of the discussion. However, one Insurance firm is more interested in its plan to lead the cryptocurrency insurance market in the UK.

The big insurance market player has just rolled out a policy that would offer protection to crypto holders against the online theft or hack of their digital assets. The policy will provide insurance cover within the range of £1,000 and £100,000.

Lloyd is arguably the oldest insurance market operator in the UK, with its operation dating back three centuries ago.

The Lloyd group, known as Atrium, is a syndicate of several underwriters. The group decided to launch the policy as a result of several incidences of hacking attacks on crypto wallets. Lloyd is sensing that the market would need protection for their crypto assets due to these incessant attacks.

Coincover also involved

Coincover, a UK-based startup, also contributed to the establishment of the insurance policy. When the policy kicks off, it will be first the insurance policy for crypto holders in the UK.

Lloyd’s head of Innovation, Trevor Maynard, revealed that crypto losses are on the increase as the industry keeps expanding and more money keeps flowing into the industry.

 “As more money flows through digital exchanges, losses from hacks are on the rise.” He said.

The new policy will be supported by a panel that includes other Lloyd’s insurers, including Markel and TMC. All the panel members are also associates of Lloyd’s product innovation facility.

Lloyd offering an innovative solution to crypto theft

Mathew Greaves, Atrium’s underwriter, said that as the crypto market is increasingly getting popular, it’s attracting both people with genuine interest and those with dubious interest. He further explained that the industry has witnessed increased numbers of hacking attacks over recent years. According to him, Lloyd has seen the need for the market to have an innovative solution to protect against theft and alleviate the new risk.

The insurance group will be providing protection on both online and physical vaults, which will give customers peace of mind over their investments and assets.