Hong Kong-based company to provide cryptocurrency insurance

Major multi-line insurance firm in Hong Kong, OneDegree Hong Kong, has joined forces with the leading Hong Kong Digital Asset Exchange (HKbitEX) to provide crypto insurance.

This corporation is one of four virtual insurance licensees in Hong Kong charged with encouraging the wider adoption of insurance technology. The exchange, on the other hand, will be insured for up to $100 million by the insurer. They’ll safeguard customers’ crypto assets entrusted into their care against theft and hacking.

According to Insurance Business Asia publication, the firm will be the first insurance company in Asia to provide coverage for digital assets. Crypto insurance is a novel service that has recently been introduced by specialist insurers based mostly in the United Kingdom and Bermuda.

Beck Tram, Chief Risk Officer at One degree said that based on their research, they expect less than 1% of companies interested in buying cryptocurrencies will qualify for such coverage. The company is therefore working to distribute its risk management framework and underwriting standards for crypto assets with other industry participants and authorities.

As a result of this, additional insurance firms would feel more comfortable offering cryptocurrency coverage. According to Tram, an expanded market size would be advantageous to insurance companies since it would provide them additional pathways through which they may pass risk.

Increasing need for cryptocurrency insurance

A statement on their website indicates that OneDegree understands that digital assets are developing at a quick rate. As a result, they believe that digital asset risk management solutions are necessary. This will improve investor confidence and promote longer-term market expansion in the long run.

The main goal of this project is to provide a safe and secure platform for professional investors to handle their cryptocurrency assets. The policy will apply to loss and misappropriation resulting from physical damage on wallets due to natural events, employee theft, as well as cybersecurity risks such as external hacking and malware attacks.

HKbitEX’s Co-Founder, Ken Lo, said that they are thrilled to partner with OneDegree Hong Kong. They are confident that these additional security measures will enhance customer experience and attract new cryptocurrency investors.