On May 10, Curv announced insurance partnership with Munich Re, covering up to $50M of digital assets for their customers of institutional wallet service.
Since cryptocurrency is a nascent industry, there are not many insurance carriers who are willing to underwrite crypto related risks. Insurance underwriters will have to understand the risks, decide on the kind of risks they are willing to provide coverage and draft policies to cater to these risks. To this end, they will have to carry out due diligence surveys of the risks to be underwritten.
Whilst the cryptoinsurance market is new with only a few underwriters participating in it, we can expect the due diligence surveys to be thorough. If underwriters have consented to grant cryptoinsurance after having done such a thorough due diligence survey, we can take it to be an independent third party endorsement of the excellent security provided by the insured party, be it the wallet provider, exchange or crypto custodian.
Of course, this may not hold true, when the industry becomes crowded with too many underwriters competing in the cryptoinsurance market.
