“ Is the value of the asset set based on the value at the point the policy was purchased , or at the point of the claim ?”
DANIEL SEELY FINANCIAL SERVICES REGULATORY LAWYER , FREETHS
For Seely , the terms and price that insurers offer crypto coverage are very much up for discussion , and “ there are also many nuances that will need careful consideration by insurers and policyholders alike ”. This includes “ the fluctuating value of cryptoassets ( in fiat currency terms ), which raises questions about how , in the event of a claim , an insurer values a claim settlement – is the value of the asset set based on the value at the point the policy was purchased , or at the point of the claim ?” With this in mind , the growth of crypto insurance seems somewhat stunted by established standard practices and uniformity in what the correct claims valuation process should look like .
Though this may appear as a significant structural obstacle in any potential policyholder growth rate for crypto insurance , Coincover ’ s Business Unit Director Katharine Wooller feels the growing distribution of ledger technology means crypto claims are now easier to price .
She says : “ The real benefit of distributed ledger technology is that the data is freely available and immutable . As the industry has been around in its current guise for around five years , there ’ s now enough data to reliably and cost-effectively price the risk ” of owning cryptoassets .
Wooller states : “ Now , there are a variety of insurance-based regtechs adding real value ,
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