Research Reveals Institutional Investors Will Increasingly Use Bitcoin to Hedge Against Inflation and Currency Devaluation but they are Concerned About a Lack of Adequate Insurance for Cryptoassets
New research (1) from Evertas, the world’s first cryptoasset insurance company, which focuses on covering institutional holders of cryptoassets including exchanges, custodians, traditional financial institutions, funds, family offices and ultra-high net worth individuals, reveals that 80% of institutional investors believe the recent Coronavirus led quantitative easing policies adopted by Central Banks and Governments could lead to a rise in inflation, and over the next five years, institutional investors will increasingly look to invest in Bitcoin to hedge against this and currency devaluation.
The findings also reveal that between now and 2025, 90% expect institutional investors to invest more in cryptoassets like Bitcoin, and 80% expect retail investors to do the same.
However, one of the biggest obstacles to the cryptoasset investment market growing is the poor level adequate insurance to cover these assets. Over half of institutional investors ‘strongly’ agree with the view that a lack of adequate insurance to cover cryptoassets is dramatically holding back the level of investment from institutional investors, hedge funds and retail investors in cryptoassets.
Raymond Zenkich, President and COO, Evertas said: “An inadequate level of insurance is holding back growth in the cryptoasset market. Insurers need to invest heavily in their risk management and underwriting processes to develop a strong understanding of the risks involved in owning and storing cryptoassets, and then from this develop robust policies and claims management processes to service this market.
“We are working closely with brokers and insurers to help them address this knowledge and proposition gap.”
Earlier this year, Evertas completed a Seed Stage funding round and raised $2.8 million. The funding round was led by Morgan Creek, who were joined by Plug n Play, Kailash Ventures, RenGen, Vy Capital and Wavemaker Genesis. Mark Yusko, Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management & Managing Partner of Morgan Creek Digital Assets, joined Evertas’ Board of Directors.
It also received its licence from the Bermuda Monetary Authority to start operating from the jurisdiction. It operates as a ‘Class 3A’ insurer. (2)
Notes to editors:
(1) Evertas commissioned the market research company Pureprofile to interview 50 institutional investors who collectively help manage £78.4 billion of assets. 25 were based in the UK and 25 in the USA. Interviews were conducted online during July 2020.
(2) CLASS 3A: Small commercial insurers whose percentage of unrelated business represents 50% or more of net premiums written or net loss and loss expense provisions and where the unrelated business net premiums are less than $50 million. Class 3A insurers are required to maintain minimum capital and surplus of $1 million.
For further information please call Phil Anderson at Perception A on 0044 7767 491 519.
Evertas – the world’s first cryptoasset insurance company – is a pioneer in the cryptoasset and insurance spaces developing one of the first new risks the insurance industry has seen in decades and filling a critical gap in the blockchain and cryptoasset industry.
They have created the only comprehensive underwriting tools and frameworks for cryptoasset holdings and blockchain systems, the only end-to-end insurance product for cryptoassets (including claims handling), and comprehensive risk management processes to underwrite and scale insurance products urgently needed for the growth and maturation of the cryptoasset and blockchain space.
The world-leading team brings together unrivaled cryptoasset/technology expertise with pragmatic and practical insurance industry experience. It is led by a seasoned group of executives who are among the leaders in blockchain, insurance, and intelligence/investigations.