South African insurance company Old Mutual has refused to insure mining rigs in Africa, making it harder to protect cryptocurrency gear there.
One of the main reasons for the refusal to insure mining rigs seems to be related to moral hazards of its insuring clients.
An insurance expert of Old Mutual, Christelle Colman, remarked, among others, that the value of the highly modified computer equipment is typically inflated and almost impossible to verify as it is usually imported from obscure suppliers in the Far East. That is certainly a moral hazard, which is considered anathema to the insurers.
Old Mutual started in Africa in 1845 and is listed in the London Stock Exchange. It operates in 14 countries, out of which 13 are in Africa and the other in China.
