Insurance Companies Deny Or Limit Coverage For Customers Exposed To FTX Due To Fear Of Risk
Currently, the consequences of FTX are still not fully enumerated, in order to avoid risks, insurance companies have recently refused or limited coverage for customers who come into contact with the bankrupt crypto exchange, leaves crypto traders and traders uninsured for any loss resulting from hacking, theft or litigation.
The collapse of the FTX industry is all the more worrisome because of the magnitude of its impact on the market. Lloyd’s of London and Bermuda insurance market experts are asking crypto companies to be more transparent about their exposure to FTX. Insurers are also proposing broad exclusion policies for any claims arising from a company’s demise.
Among them, experts from the insurance markets of Lloyd’s of London (SOLYD.UL) and Bermuda have asked crypto companies to be more transparent about their exposure to FTX. Kyle Nichols, president of brokerage Hugh Wood Canada Ltd, said insurers are asking customers to fill out questionnaires asking whether they invest in FTX or have assets on the exchange.
The insurer also proposed policy exclusions that would deny coverage for any claims arising from the collapse of FTX, including digital asset protection and directors’ personal liability and executives of cryptocurrency trading companies.
Exclusions may act as a failsafe for insurers, and will make it even more difficult for companies that are seeking coverage, insurers and brokers said. Bermuda-based crypto insurer Relm, which previously has provided coverage to entities linked to Sam Bankman-Fried’s exchange, takes an even stricter approach.
“If we have to include a crypto exclusion or a regulatory exclusion, we’re just not going to offer the coverage,”
Relm co-founder Joe Ziolkowski said
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
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Insurance Companies Deny Or Limit Coverage For Customers Exposed To FTX Due To Fear Of Risk
Currently, the consequences of FTX are still not fully enumerated, in order to avoid risks, insurance companies have recently refused or limited coverage for customers who come into contact with the bankrupt crypto exchange, leaves crypto traders and traders uninsured for any loss resulting from hacking, theft or litigation.
The collapse of the FTX industry is all the more worrisome because of the magnitude of its impact on the market. Lloyd’s of London and Bermuda insurance market experts are asking crypto companies to be more transparent about their exposure to FTX. Insurers are also proposing broad exclusion policies for any claims arising from a company’s demise.
Among them, experts from the insurance markets of Lloyd’s of London (SOLYD.UL) and Bermuda have asked crypto companies to be more transparent about their exposure to FTX. Kyle Nichols, president of brokerage Hugh Wood Canada Ltd, said insurers are asking customers to fill out questionnaires asking whether they invest in FTX or have assets on the exchange.
The insurer also proposed policy exclusions that would deny coverage for any claims arising from the collapse of FTX, including digital asset protection and directors’ personal liability and executives of cryptocurrency trading companies.
Exclusions may act as a failsafe for insurers, and will make it even more difficult for companies that are seeking coverage, insurers and brokers said. Bermuda-based crypto insurer Relm, which previously has provided coverage to entities linked to Sam Bankman-Fried’s exchange, takes an even stricter approach.
“If we have to include a crypto exclusion or a regulatory exclusion, we’re just not going to offer the coverage,”
Relm co-founder Joe Ziolkowski said
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
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