Hong Kong’s OneDegree to Offer Insurance for Digital Assets With Munich Re
Clients will be able to get reinsurance for crypto.
Apr 11, 2022 at 9:45 a.m. UTC:format(webp)/cloudfront-us-east-1.images.arcpublishing.com/coindesk/DGDTLVEWJRBQXNPIFMZCA73U4Q.jpg)
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As crypto’s market cap pushes past $2 trillion and makes its way onto the balance sheets of many institutional investors and corporations, Hong Kong insurer OneDegree has announced a deal with Munich Re, one of the world’s largest reinsurers, to offer a new digital asset insurance product.
- OneInfinity, the digital asset insurance product, is targeted toward digital asset trading platforms, custodians, asset managers and technology providers.
- Munich Re will provide reinsurance, described as "insurance on insurance companies," that ensures an insurance company remains solvent even in the face of large payouts.
- Having insurance backed by reinsurance is the norm for major infrastructure providers of any asset class, but takes a unique twist with crypto given the intensity of cyberattacks.
- Becky Tam, OneDegree's general manager of digital assets, said her firm runs “risk-based analysis" that covers everything from cybersecurity and operations to personnel management.
- “It’s just like how if you are a heavy smoker and drinker you will struggle to buy medical insurance,” she said. “Not everyone that comes to us can get insurance.”
- The company doesn't insure decentralized finance (DeFi) projects yet, but hopes to do so after it studies the market more.
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