The rise of theft, fraud, and hacking associated with bitcoin trading has shoved insurance firms to opoffering insurance packages to investors te the digital currency space. Several insurers have determined to venture into suggesting insurance covers for different companies dealing with cryptocurrency.
The risks involved are fairly high, but the market is ripe for insurance firms to opoffering their services. For example, last week on Friday Coincheck ,a company te Tokyo wasgoed the latest victim of hacking with coins worth $534 million being stolen. Such incidence will be a thing of the past with insurance industry suggesting covers for digital trading companies.
Insurance Firms Suggesting Packages
Some of the companies suggesting insurance coverage te cryptocurrency include Superb American Insurance Group, XL Catlin, Chubb, Mitsui Sumitomo Insurance among others. Thesis companies offerande different insurance packages to their clients. For example, the latter insurance rock-hard insurance package takes care of not only internal but also outer threats. The voorkant also includes mistakes, unauthorized access, and employee theft. The packages range from ten million yen up to one billion yen omschrijving to $88,500 and $8,850,000 respectively. Te addition to the package, the voorkant comes with other services which help ter preventing such case. The rigid provides security diagnosis and checks employer background before employment te the company. The preventive measures are ter place to mitigate loses which may occur.
Another company that recently launched its insurance services te the cryptocurrency trading is Line . Line is a messaging app based ter Japan that has announced its venture into digital currency with plans already underway. Albeit Line is a messaging app, it has created a fresh division which will suggest a toneel for its users to sell and buy bitcoin. The verhoging will also suggest loans and insurance covers to its users. The stiff has millions of users who are the target market for the insurance and loans.
Bijzonder from the above, another rigid suggesting insurance covers to merchants and retailers who accept bitcoin spil payment is bitFlyer, which offers packages for any payment transaction associated with bitcoin ter Japan. The merchants will be covered from transaction delays, mishaps with payment system or gateway issues. The voorkant will be suggested to people who have the point of sale systems suggested by bitFyler exchange through Mitsui Sumitomo Insurance rock hard.
Challenges to Insurance Firms
Insurance companies are doing their best to voorkant all the cryptocurrency trading companies, but the firms have very first to invest ter good security features to reduce cases of fraud. With trading taking place online, scammers are also on the rise. Many have set up shady companies which pretend to be dealing te cryptocurrencies, yet they are after stealing from investors.
Similarly, insurance firms should come up with good mechanisms for doing due diligence to companies before suggesting their insurance covers to prevent covering shady companies which are after stealing from investors.
The insurance industry decision to venture into cryptocurrencies market is a good venture which will enable them to reap the profits. But the venture also exposes the insurance firms to uncertain challenges associated with fraud and money laundering which are serious offenses. Insurance companies have to do due diligence before suggesting their covers to the companies. It will enable the companies to offerande covers for legit firms and avoid any company associated with money laundering.
More insurance companies are also programma to suggest their services to the cryptocurrency trading companies which will enable competitive offers to be readily available for the traders and investors.