Evertas gets Lloyd’s coverholder status
An American cryptoasset insurer with an island-based subsidiary licensed by the Bermuda Monetary Authority has been granted Lloyd’s of London coverholder status.
Chicago-headquartered Evertas said this coveted designation would permit it to significantly expand access to insurance products protecting against the risk of theft and loss of custodial cryptoassets.
The company said only two to three per cent of global cryptoassets were thought to be insured. As a Lloyd’s coverholder, Evertas will provide insurance capacity to cryptoasset investors.
Coverholders are specialty insurance providers authorised by Lloyd’s to write and service policies covering risk in geographies or niche sectors requiring high levels of expertise.
In this case, Evertas, the first coverholder at Lloyd’s to specifically cover digital wallet products, will use its unmatched knowledge of cryptoasset risk to write policies on behalf of Lloyd's syndicate member Arch Insurance, which served as sponsor of the Evertas coverholder application, the company said.
Evertas CEO J. Gdanski said: “Our appointment as a Lloyd’s coverholder represents a vital new development for the crypto industry.
“The lack of insurance capacity plaguing this sector has hindered growth and liquidity by keeping many institutions from entering the market. The addition of the new capacity, which Evertas will offer as a Lloyd’s coverholder, will go down as an important milestone in the history of crypto.”
Hank Watkins, regional director and president of Lloyd’s in the Americas, said: “Our approval of Evertas’ coverholder application is an example of collaboration between Lloyd’s insurer Arch, Lloyd’s broker Marsh and their new distribution partner on an innovative solution aimed at facilitating the growth of an industry sector previously hindered by a lack of risk transfer options.”
The company said the subject of insurance for cryptoassets had gained significant traction recently, given the increasing pace of high-profile crypto exchange hacking incidents – estimated at more than $4 billion in 2021 alone – in addition to recent US Congressional hearings in which the problem of uninsured custodial wallets was examined at length.
Mr Gdanski added that in the interest of providing as much crypto policy capacity as possible, Evertas looked forward to establishing relationships with additional Lloyd’s syndicates and other insurance carriers.
Evertas Insurance Ltd is licensed by the BMA as a Class 3A insurer.
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