Crypto Firm Granted Insurance Through Lloyds of London

Sun, 2nd Sep 2018

As the FTSE 100 ended last week on a positive note, perhaps the big news of the week was that Lloyds of London had granted insurance for a crypto storage firm. The move was noteworthy because it marked a change from past reluctance by insurance firms to offer coverage for the digital currency sector - one which is traditionally volatile.

Lloyds of London is the world’s largest insurance marketplace, and they have agreed to offer insurance to Kingdom Trust to protect against the theft or destruction of assets stored by the company. Kingdom Trust holds around $12 billion in assets, and has been looking for an insurance provider since its launch in 2010.

The cover is being touted as a move that helps to bring digital currency back into the mainstream. Insurance companies have so far been reluctant to get involved with digital assets because there is limited data about the risk factor in the industry, and there is a relative lack of safeguards too. Kingdom Trust may be viewed more favourably by insurers because they use offline storage for assets, which means that it is more secure than many other companies, which use online storage that is more susceptible to tampering and to cracking attempts.

Another issue making headlines was the impending departure of Mark Carney. The Bank of England governor is due to come to the end of his term in June next year. The treasury is denying rumours that it had approached Carney about staying on for an extra year to offer some continuity after the UK leaves the EU.

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