Crypto insurer Evertas becomes first Lloyd’s coverholder for digital wallet products
Lloyd’s of London has granted coverholder status to cryptocurrency-focussed insurance company Evertas that is licensed to operate as a Class 3A insurer by the Bermuda Monetary Authority (BMA).
The approval makes Evertas the first coverholder at Lloyd’s to cover digital wallet products specifically and write policies on behalf of Lloyd's syndicate member Arch Insurance, which served as sponsor of its coverholder application.
The status enables the crypto-asset insurer to expand access to insurance products protecting against the risk of theft and loss of custodial crypto-assets.
Currently only 2-3% of global crypto-assets are thought to be insured, the company said. As a Lloyd’s coverholder, Evertas will provide insurance capacity to crypto-asset investors.
“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 (pictured), 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.”
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