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Cryptoasset insurer licensed in Bermuda

A company that provides insurance cover for the theft or loss of cryptoassets has been licensed to operate in Bermuda.

Evertas is using Artex Risk Solutions (Bermuda) as its insurance manager and representative in Bermuda.

It is focused on covering institutional holders of cryptoassets, including exchanges, financial institutions, family offices and ultra-high net worth individuals.

David Burt, the Premier, welcomed the company.

He said: “They were a company I personally met and sold on the merits of Bermuda early in the development of our fintech industry.

“Their extensive experience in the digital asset space is a considerable strength.”

Mr Burt added: “It lends itself well to understanding the risks of the industry and providing much needed coverage to the digital asset businesses that choose to make Bermuda their home.”

The executives of Evertas include Ty R. Sagalow, chief insurance officer, who was a senior executive with American International Group for 25 years, where he held the post of chief operating officer of AIG eBusiness Risk Solutions.

He was also a founding member and CEO of Lemonade Insurance.

The CEO of Evertas is J. Gdanski. According to information from the company, he was “the first dedicated blockchain hire at two of the largest banks” and “made significant contributions to enterprise blockchain in its seminal stage including with early consortiums [R3, Enterprise Ethereum Alliance, Trusted IOT Alliance]”.

In a statement, Mr Gdanski said Evertas is the only dedicated insurer providing third-party risk insurance “with a comprehensive, vetted underwriting framework and in-house claims handling”.

He said that the previous lack of a full-service insurance company in this market has limited its growth.

The company's investors include Wave Financial, Kailash Ventures, Plug and Play, and VY Capital.

Evertas said that, initially, its policies will look at covering the loss and theft of private keys representing the ownership of cryptoassets.

“These types of losses can result from physical theft, cyberattacks/hacks, social engineering and natural disasters,” it said.

As a Class 3A insurer, Evertas is required to maintain minimum capital and surplus of $1 million.

Mike Woytowicz, director of business development, International, at Artex, said: “Artex is pleased to be one of Evertas' strategic partners as they become the first to provide bespoke insurance coverages dedicated to custodians of digital assets.”

While Roland Andy Burrows, CEO of the Bermuda Business Development Agency, congratulated Evertas on achieving its licence from the Bermuda Monetary Authority, and added: “Their decision to choose Bermuda reflects the strength and quality of the jurisdiction and its gold-standard framework for established and emerging global industries, facilitating commercial growth and innovation.”

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Published June 11, 2020 at 9:00 am (Updated June 12, 2020 at 11:43 am)

Cryptoasset insurer licensed in Bermuda

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