LSM launches insurance for EU cryptocurrency entities
Liberty Specialty Markets (LSM) has introduced a new insurance product for financial institutions operating within the European cryptocurrency sector.
The product is designed for entities that are compliant with the EU’s markets in crypto-assets directive, which provides a regulatory framework for the crypto-asset market in Europe.
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The coverage includes protection against professional liability, management errors, and the risks of theft and fraud.
With coverage limits available up to €3m ($3.5m), the product targets service providers in the cryptocurrency space, including traditional banks, asset managers, and blockchain startups.
The launch of this product is a response to the demand from the financial industry, which is currently facing uncertainty influenced by changes in macroeconomic conditions, regulatory environments, and technological developments, such as the advent of digital banking and the rise of cryptocurrencies.
LSM Europe head of financial institutions Jorge Chao said: “The crypto revolution presents significant opportunities, with increasing adoption redefining economic and financial relationships worldwide. The complex risks associated with that are, however, a major strategic issue for financial institutions.
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By GlobalData“The product announced today has been meticulously created, working with our cyber and technology teams to close knowledge gaps that can hinder crypto insurance propositions, allowing clients to pursue opportunities in the fast-developing crypto market safely.”
The new product extends the reach of current LSM products that include bankers’ blanket bonds, professional liability, and directors and officers (D&O) liability.
Recently, LSM appointed Benjamin Faerestrand as its UK high net worth (HNW) household underwriter, marking its entry into the HNW insurance market.
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