As with any new exposures, cryptocurrencies bring with them new
insurance needs. Whilst the premium earned from cryptocurrency
businesses is modest, to date, insurers are beginning to accept
this as an area of possible organic growth and they are seriously
considering the risks versus rewards of underwriting crypto-related
businesses.
What is blockchain and cryptocurrency?
Blockchain is a digital ledger of records, called blocks. Every
block links to a previous block (the chain) containing an
individual time and date stamp. The ledger records transactions
chronologically and publicly in a distributed network. The
transactions cannot be copied or reversed, meaning that the ledger
is virtually incorruptible. It is a decentralised network,
self-managed by the various parties engaged in the transaction, who
all verify the information provided. Put simply, it is a
sophisticated spreadsheet that is duplicated thousands of times
across multiple computers, which is
