USI, an insurance broker giant, has quietly built a large team consisting of crypto risk specialists. USI hopes to capture the market for digital assets which is still largely unserved by the wider insurance industry.
More crypto companies are choosing to insure themselves with insurance policies, but they do so at high prices and with proscriptive policies. Is it worth it?
It is common knowledge in crypto that bear market are a time for building. This is a time to avoid the more exciting work of fundraising and partnerships in favour of the quieter business that is product development.
USI is one of the largest international insurance brokers
It’s been the exact opposite for USI, one of the largest international insurance brokers. This period is being used by the firm’s digital asset group to push for deals and clients.
USI quietly has been building a team of 40 people who are experts in cryptocurrency and fintech risk since 2019.
The broker acts as an intermediary between insurance companies and consumers. They are there to advocate for the insured and help them find the right policy. Insurance companies seldom interact directly with their clients.
Digital assets and crypto firms need more insurance options
The broader insurance market is severely under serving the digital assets sector. This is partly due to its youth, but also because of its volatility. According to Bloomberg Law, Broker Aon believes that the crypto market insurance rate falls below 2%.
However, crypto companies are beginning to recognize the value of insurance and there is a growing demand. USI is not the only option. Relm and Evertas are two examples of specialist insurance companies that offer crypto-specific policies.
These policies can be prohibitively expensive for smaller businesses. Some wonder if they are worth it.