Evertas, the world’s first cryptoasset insurance company, has announced plans to launch a Managing General Agent (MGA) that specializes in cryptoasset-related theft/loss coverages.
“The time is now to start expanding the insurance infrastructure that the cryptoasset space so desperately needs in order to continue growing”, says J. Gdanski, CEO and Founder of Evertas.
Evertas is looking to partner with an insurance company who also recognizes the market opportunity and who would provide insurance capacity of up to $50 million per policy. It is in discussions with several insurers and plans to announce a carrier partner later this year.
An MGA is a specialized type of insurance agent or broker that has been granted underwriting authority by an insurer and can administer programs and negotiate contracts for an insurer. An MGA’s functions can include binding coverage, underwriting and pricing, settling claims, and appointing retail agents in a certain region, all of which are typically carried out by insurers. At its core, the MGA manages all or part of the insurance business of an insurer and acts as an agent or broker for them, while working as the intermediary between insurers and agents, and/or insureds.
Evertas focuses exclusively on the underwriting of cryptoassets insurance for institutions and believes it would be the only cryptoasset-specific MGA in the market.
Raymond Zenkich, President and COO, Evertas said: “The cryptoasset market size is small today vis-à-vis other asset classes. While the current market totals around $200 billion today, we estimate it will grow to $1 trillion over the next five years as institutional investors continue to increase their exposure in the market.”
“We hold a unique position in the sector today as we are the only company focused exclusively on the underwriting of cryptoassets and insurance for institutions such as custodians/exchanges, traditional financial institutions, crypto funds, traditional funds, market utilities, and family offices.”
Evertas estimates the value of crypto assets held by institutions is around $75 billion, but over the next three years, it predicts this will rise to more than $135 billion.
Evertas says that there are a small handful carriers and brokers who have been actively able to service this market, but they do not focus exclusively on cryptoasset insurance and the coverages placed have typically been for only a small fraction of total insured’s assets held.
Evertas focuses exclusively on cryptoassets, helping clients and insurers understand the risks associated with these and ensuring they are adequately covered.
Notes to editors:
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About Evertas
Evertas is the world’s first cryptoasset insurance company. In February 2020, the company rebranded from BlockRe, which was founded in 2017.
Evertas has a world-leading team led by an experienced group of executives including the founding Chief Insurance Officer (and founding member) of Lemonade, blockchain team leader at Bank of New York, and a blockchain industry insurance expert. Their backgrounds bring together an unrivalled cryptoasset/technology expertise with pragmatic and practical insurance industry expertise.
The founders of Evertas have over 40 years of combined experience in the insurance sector, and more than ten in the crypto and blockchain markets.
