Today, Evertas announced our approval as a Lloyd’s of London coverholder. This coveted designation will permit Evertas to significantly expand access to insurance products protecting against the risk of theft and loss of custodial cryptoassets. Currently only 2-3% of global cryptoassets are thought to be insured. As a Lloyd’s coverholder, Evertas will provide insurance capacity to crypto custodians in addition to mining and blockchain infrastructure providers, exchanges, investment funds, family offices and high net worth individuals.
Coverholders are specialty insurance providers authorized 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 crypto risk to write policies on behalf of Lloyd’s syndicate member Arch Insurance, which served as sponsor of the Evertas coverholder application.
“Our appointment as a Lloyd’s coverholder represents a vital new development for the crypto industry,” said Evertas CEO J. Gdanski. “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 subject of insurance for cryptoassets has gained significant traction recently, given the increasing pace of high-profile crypto exchange hacking incidents – estimated at over $4 billion USD in 2021 alone – in addition to recent Congressional hearings in which the problem of uninsured custodial wallets was examined at length.
Gdanski added that in the interest of providing as much crypto policy capacity as possible, Evertas looks forward to establishing relationships with additional Lloyd’s syndicates and other insurance carriers.