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The cryptocurrency industry has seen a lot of developments over the last few months, including the introduction of futures and a number of high-profile hacks on several exchanges. Now, insurers are getting in on the cryptocurrency hype, with some of them launching policies that protect people and exchanges against hacks and theft.
These insurers include US-based XL Catlin, which offers annual crime coverage of up to $25 million per incident to exchanges, and Japanese Mitsui Sumitomo Insurance, which provides coverage of up to 1 billion yen ($9.1 million). Given the state of the cryptocurrency industry, this might be a good time for insurers to consider entering the space.
The tendency of crypto markets to be subject to theft presents an opportunity for insurers. Just last week, US-based cryptocurrency exchange Coincheck suffered a cryptocurrency hack, in which $543 million in customer holdings was stolen — the largest sum ever lifted from a cryptocurrency exchange. Moreover, individuals aren’t safe from cryptocurrency theft: A trader was recently held at gunpoint and forced to transfer an undisclosed amount of Bitcoins to the perpetrator.
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