Lloyd’s of London Launches Digital Asset Insurance Policies on Ethereum

Lloyd’s of London Embraces Digital Asset Insurance

Lloyd’s of London, a venerable institution in the insurance industry with a history spanning over three centuries, is now at the forefront of innovation by endorsing digital asset protection policies. These policies are arranged on the public Ethereum blockchain, allowing for payments made natively and on-chain using cryptocurrency. This initiative is made possible through the collaboration of Lloyd’s coverholder Evertas and the smart contract insurance provider Nayms.

Just a few years ago, obtaining any form of insurance coverage for cryptocurrency was a significant challenge. The introduction of blockchain technology not only facilitates the payment of policies in cryptocurrency but also streamlines the traditionally cumbersome paperwork that involves multiple intermediaries. This new offering from a consortium of syndicates at Lloyd’s of London highlights the remarkable progress the insurance industry has made in adapting to the digital age.

“What we’re enabling is for individuals and businesses utilizing public blockchain infrastructure to seamlessly engage with highly regulated, traditional institutions that operate with fiat currencies,” stated J. Gdanski, CEO of Evertas, during a recent interview. “Whether clients choose to pay using USDC, native cryptocurrencies, or to place policies entirely on-chain, the blockchain technology aids in coordinating interactions between brokers, the insured parties, and the insurers. We believe this represents a groundbreaking advancement in infrastructure.”

Nayms serves as a digital marketplace where brokers and underwriters can connect with investors interested in cryptocurrency. The platform’s name is a nod to Lloyd’s “Names,” the term used for the individuals and corporations that underwrite risks within the historic insurance market.

Evertas specializes in providing coverage to custodians, cryptocurrency exchanges, and the burgeoning bitcoin mining sector. Notably, last year, Evertas acquired Bitsure, a company focused on mining insurance, and has since begun offering policy limits of up to $200 million for each crypto mining location.

“The crypto-native expertise we bring to the underwriting process equips us with a comprehensive understanding of the risks we cover,” explained Nick Selby, Evertas’ head of European underwriting, in an interview. “This proficiency allows us to be very clear about what is included and excluded in our coverage, and we pride ourselves on being able to process insured claims more rapidly than our competitors.”