London's Lloyd's of London, a renowned insurance market with a 300-year history, launches insurance policies payable in cryptocurrency
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London's Lloyd's of London, a renowned insurance market with a 300-year history, launches insurance policies payable in cryptocurrency
Lloyd's of London offers digital asset protection insurance via the Ethereum public blockchain.
Navigating Web3 tides with focused insightsBy Aiying
Lloyd’s of London, with over three centuries of history, is now offering digital asset protection insurance through the Ethereum blockchain. These insurance policies can be paid directly in cryptocurrency on-chain, streamlining the cumbersome paperwork traditionally handled by intermediaries and improving efficiency. Evertas and Nayms, a smart contract-based insurance provider, play pivotal roles in this process.
Lloyd’s of London is one of the world’s most renowned insurance markets, established in 1686. As a global insurance and reinsurance marketplace, Lloyd’s is not an insurance company itself but a market composed of multiple insurance firms and individual underwriters known as "Names." Lloyd’s provides a platform for underwriting various risks, including shipping, aviation, and natural disasters—particularly complex and high-risk areas.
The uniqueness of Lloyd’s lies in its underwriting approach and operational model. Each underwriter (or “member”) assumes risk through syndicates at Lloyd’s, which are managed by managing agents. This structure allows risks to be distributed among multiple members, enhancing underwriting capacity and stability.
Evertas, an insurance platform focused on the cryptocurrency sector, has recently been granted underwriting membership by Lloyd’s of London, becoming the first Lloyd’s underwriter authorized to provide insurance for digital wallet products. This status enables Evertas to write and manage policies across different regions and specific domains, acting on behalf of Arch Insurance, a Lloyd’s corporate member. Arch Insurance also sponsored Evertas’ application for underwriting membership.
Hank Watkins, President of Lloyd’s Americas, said: "Approving Evertas’ application reflects the collaboration between Arch Insurance and its new distribution partner. This innovative solution aims to foster growth in an industry previously hindered by a lack of risk transfer options."
J. Gdanski, CEO of Evertas, stated that their goal is to enable seamless integration between users of public blockchain infrastructure and traditional fiat institutions. Whether payments are made in USDC or native cryptocurrencies, or policies are fully placed on-chain, blockchain technology helps coordinate operations among brokers, insured parties, and insurers.
Nayms is a digital marketplace focused on connecting brokers and underwriters with crypto capital investors. Its name derives from the term “Name” at Lloyd’s—the individuals and companies who underwrite risks there. Evertas also provides insurance for custodians, exchanges, and Bitcoin mining operations. Last year, Evertas acquired Bitsure, a specialist in mining insurance, and now offers policy limits of up to $200 million per mining site.
Nick Selby, Evertas’ Head of Underwriting for Europe, said they have brought deep expertise from the crypto space into the underwriting process, gaining a thorough understanding of the risks involved. This allows them to clearly define coverage and expedite claims payments.
Specific Products
According to Aiying, Evertas currently offers six main insurance products, detailed as follows:
1. Mining Property Insurance
Protects mining hardware and facilities against physical damage. Specifically designed for Bitcoin mining farms, this insurance covers equipment damage and business interruption caused by natural disasters such as fire, flood, and earthquake. Policy limits can reach up to $360 million.
2. Platform Failure Insurance
Provides protection against losses resulting from technical errors such as software or hardware failures. This insurance helps businesses manage system crashes, server outages, and other technical issues, ensuring financial security in the event of technological failure. Coverage limits can reach up to $10 million.
3. Theft/Loss Crime Insurance
Protects digital assets and cash against theft, loss, or damage caused by external malicious actions and attacks. This insurance covers all forms of digital asset storage—including cold, warm, and hot storage—ensuring asset security in the event of external attacks.
4. Internal Theft/Loss Insurance
Provides protection against theft, loss, or damage of digital and physical assets caused by employees or contractors. This insurance is designed to mitigate insider threats, ensuring compensation for businesses facing internal misconduct.
5. Directors and Officers Liability Insurance
Protects corporate leadership from third-party legal lawsuits, covering liabilities of directors and officers, corporate indemnification, and corporate liability. This insurance ensures financial protection for executives in cases of litigation and compliance issues, with coverage limits reaching up to $10 million.
6. Digital Property Insurance
Protects digital assets such as NFTs against loss or theft and addresses pricing challenges. This insurance takes into account the uniqueness and rarity of each asset, ensuring accurate valuation and compensation in the event of theft or loss.
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