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Currently, the service is aimed at those with a relatively large collection of bitcoins, with the minimum level of cover set at £5,000
Hmmm, so it's really aimed at people with deep pockets and short computing skills? Do the risk quantifiers at the insurance company actually understand the level of danger this represents?
Don't get me wrong, it sounds like a positive development overall, as even if the insurance company don't fully comprehend what they're exposing themselves to, they likely will do soon enough. And in the medium term, the rich + techno-ignorant will genuinely need this sort of service to help them feel confident enough to buy into the market (in a way that gives them access to actual cryptocurrency, instead of just making fiat money using options trading).
I just hope this doesn't become the latest in a long line of storage service catastrophes. Who's up for putting their thousands of BTC fortune in to this thing, let's say tomorrow? I wouldn't give them 1 BTC, and possibly wouldn't do so for a few years. That's where the long term established websites really have an advantage; Mt. Gox, for all their problems, can definitely hold onto a few coins without getting hacked or scammed by staff (if you're using 2FA, anyway). No more than a few, though
