Cryptoasset insurer Evertas secured a license from the Bermuda Monetary Authority to start operating from the jurisdiction.
Evertas’ operations in Bermuda will now aim to start issuing policies for theft or loss of cryptoassets, with a view to securing a rating within three to five years.
The insurer is focused on covering institutional holders of cryptoassets, which includes exchanges, custodians, traditional financial institutions, funds, family offices and ultra-high net worth individuals. Evertas will be looking at risks that are complimentary across its carrier partners; it will be working with them to address the dramatic lack of capacity for cryptoasset risks.
Initially, its policies will specifically look at covering the loss and theft of private keys representing the ownership of cryptoassets. These types of losses can result from physical theft, cyber attacks/hacks, social engineering and natural disasters.
Artex Risk Solutions (Bermuda) Ltd. will serve as insurance manager and principal representative in Bermuda, providing services such as financial reporting, operational support, treasury and administrative services.
Cryptoassets are a new and rapidly expanding asset class with a total market capitalization of $300 billion, said Evertas.
Due to the highly specialized nature of underwriting the risk associated with cryptoassets, there are very few insurers currently operating in this sector. Evertas will offer a complete end-to-end product for cryptoasset insurance from underwriting, to crypto-forensics and claims handling.
“There are many indications of the cryptoasset market maturing rapidly. This includes developments around regulation, the emergence of self-regulatory organizations and of new exchanges, custodians, banks and funds,” Evertas CEO And founder J. Gdanski said in a statement.
Gdanski said the Bermuda license is key to growing the company’s business through international expansion.
Evertas focuses exclusively on cryptoassets, helping clients and insurers understand the risks associated with these and ensuring they are adequately covered.
It will operate in Bermuda as a “Class 3A” insurer, which is required to maintain minimum capital and surplus of $1 million.
Evertas bills itself as the world’s first cryptoasset insurance company. In February 2020, the company rebranded from BlockRe, which was founded in 2017.
Evertas is led by an experienced group of executives including the founding chief insurance officer (and founding member) of Lemonade, blockchain team leader at Bank of New York, and a blockchain industry insurance expert.
*A version of this story ran previously in our sister publication Insurance Journal.