Can crypto Insurance be a next big thing? - page 3.

timerland

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Quote from: carlisle1 on October 07, 2019, 12:29:42 AM

can someone share about insurance that existing and reliable to use?those been here for long and has many users already
from so many scamming and hacking that happened lately it is very alarming that one day our exchange is the next victim.no matter how secured they are but this hackers are more advance and knowledgeable to take down their target and we cannot deny the fact that the last victims are bigger exchange

willing to have one as my holdings are getting high and im afraid of losing

but this may a good initiative for the investors to create insurance company that legit and can be trusted and must be owned by popular team in this community

There hasn't been any services that are in the insurance business actually, and it's for a pretty good reason why - it's too hard to do such a thing.

There are so many questions to answer when it comes to online insurance, mostly because of how easy it is to fake stuff online. Here's an example.

1. How do you know it was a real loss of funds?
2. How much would you pay for this?
3. Who would be paying for this?
4. What if someone loses millions, will you have enough money to pay for it?

Kakmakr

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Crypto insurance is going to create more problems for exchanges, because that cost must come from somewhere and usually those extra overheads will have to be generated from higher fees to their customers. The Exchanges will also give less attention to software exploits, because they would rely on the insurance to cover their losses, when exploits are found.

Most insurance will also not cover all the losses, so the victims of these hacks would not get all their money back, when someone hack these services and insurance is very expensive, so they will not take cover for large amounts. Roll Eyes

lobat999

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I think insurance policies could be the next big thing in crypto space but I doubt it will ever attract the attention of most ordinary users who often holds less than 1 BTC at a time. Aside from that, I assume it is generally targeted only to big players into the crypto industry like exchanges, crypto projects who holds large value of crypto, etc.

I believe its one of the good things that happened in the industry, giving more sense of security and assurances and it could enable more players to adopt cryptocurrency by minimizing risks associated with hodling crypto which are often one of the reasons why most investors don't want to partake or be part of this industry.

akar87

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Using cryptocurrency as your insurance is better because your money will increase if bitcoin price higher one day, but did you see how many insurance companies have bankrupt they cannot pay claim by their member and there are use money, but how come if your insurance using bitcoin and price increase higher next time?

BlackFor3st

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Quote from: senne on October 06, 2019, 10:30:02 AM

Crypto crime rate has increased significantly. An article in Cointelegraph stated that criminals have stolen around $4.5B worth of digital currency in the first half of 2019 alone.^[1]
"The growth in popularity of cryptocurrencies has, in many ways, outpaced the infrastructure built to support it." ^[2]
Exchanges which control most of the trading volume and also act as a storage place for cryptocurrency have become an easy target of hackers. So, could insurance be a promising sector in cryptocurrency or there are drawbacks to it? What could be the challenges for both the insurer and the insured?

^[1]https://cointelegraph.com/news/cyber-criminals-netted-43b-from-crypto-related-crime-in-2019-study
^[2]https://cointelegraph.com/news/crypto-insurance-a-promising-sector-despite-caution-of-major-players

It could be the best solution for the exchanges especially if they will get hack then they can still continue their operation as they are insured but I am not that sure if someone is willing to launch a crypto insurance.

Being insured is the best option for the exchange to continue without worrying anything even if they will get hacked but in crypto world, everything is possible like the exchange will create an inside job just to get the insurance. So I am wondering, what will be the counter of the insurance company if they are going to step into crypto insurance.

cryptozink

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The premiums and restrictions will make crypto insurance usless

carlisle1

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can someone share about insurance that existing and reliable to use?those been here for long and has many users already
from so many scamming and hacking that happened lately it is very alarming that one day our exchange is the next victim.no matter how secured they are but this hackers are more advance and knowledgeable to take down their target and we cannot deny the fact that the last victims are bigger exchange

willing to have one as my holdings are getting high and im afraid of losing

but this may a good initiative for the investors to create insurance company that legit and can be trusted and must be owned by popular team in this community

Kyraishi

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There shouldn't be a need for insurance in crypto, especially when we are trusting exchanges with millions of dollars worth of assets. They should be the ones that make sure our funds are safe from hackers, and it's not fair for us to need to pay insurance on our own funds.

It'll be very hard to implement such a thing as well - how would companies insure someone getting hacked, how much would you pay and how would you even prove you got hacked in the first place? There are too many questions for this to work.

Sadlife

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Quote from: senne on October 06, 2019, 10:30:02 AM

Crypto crime rate has increased significantly. An article in Cointelegraph stated that criminals have stolen around $4.5B worth of digital currency in the first half of 2019 alone.^[1]
"The growth in popularity of cryptocurrencies has, in many ways, outpaced the infrastructure built to support it." ^[2]
Exchanges which control most of the trading volume and also act as a storage place for cryptocurrency have become an easy target of hackers. So, could insurance be a promising sector in cryptocurrency or there are drawbacks to it? What could be the challenges for both the insurer and the insured?

^[1]https://cointelegraph.com/news/cyber-criminals-netted-43b-from-crypto-related-crime-in-2019-study
^[2]https://cointelegraph.com/news/crypto-insurance-a-promising-sector-despite-caution-of-major-players

yeah surely is that insurance is what cryptonians need to assure their assets to be secured and safe

but what if the insurance itself is the scammers/hackers?around the world cases about insurance company is really alarming,many of them that supposed to help the people are the one who victimizes them
maybe this is another arguments to tackle before gathering support but for now we must find a strong and reliable one

veleten

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I don't think crypto insurance is going to be a big thing any time soon
simply because of the fact that crypto doesn't have legal status in many countries and in many countries you would have hard time explaining what happened to the local police
then there is this problem of tracing and recovering the stolen assets , the transactions are irreversible and if the funds are stolen , in most cases they are gone
insurance companies know their risks and their analysts are top notch , so I highly doubt they would want to take on this market just yet
maybe in the future ,in 5-10 years time when the legal aspects are established and bitcoin and other cryptocurrencies have their legal status we could see some crypto insurance companies appear
but at the moment it is too early

Expecto

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Crypto insurance can be a very effective formula for people whose crypto money is robbed. But there should be some criteria for insurance of course. If there is not limitations, crypto insurance company or insurer will have hard times.

nh0xxpr01

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It's a great read btw

YuginKadoya

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If the legality of Bitcoin and other cryptocurrency has been established maybe it can be a big thing but as of right now the possibility is still hanging, If fiat currency had made it and it becomes possible on that why not with Cryptocurrency as well, The question is who gonna establish this a whale can certainly make his own insurance company but the legality of cryptocurrency is not yet passed, but for me I think this is great as you can sure be insured with cryptocurrency and establishing this in the near future it can be a backbone for certain opportunity, but can it become possible in the future?

minersday

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Quote from: senne on October 06, 2019, 10:30:02 AM

Crypto crime rate has increased significantly. An article in Cointelegraph stated that criminals have stolen around $4.5B worth of digital currency in the first half of 2019 alone.^[1]
"The growth in popularity of cryptocurrencies has, in many ways, outpaced the infrastructure built to support it." ^[2]
Exchanges which control most of the trading volume and also act as a storage place for cryptocurrency have become an easy target of hackers. So, could insurance be a promising sector in cryptocurrency or there are drawbacks to it? What could be the challenges for both the insurer and the insured?

^[1]https://cointelegraph.com/news/cyber-criminals-netted-43b-from-crypto-related-crime-in-2019-study
^[2]https://cointelegraph.com/news/crypto-insurance-a-promising-sector-despite-caution-of-major-players

looking at the current state of the crypto space, crypto insurance can not really make any significant change or reduce crypto crime. It will be very difficult for an insurance project or platform to restore stolen cryptocurrencies. most of these situation involve huge amount of funds being stolen and restore or repaying back such funds is not gonna be easy. The best thing that can be done to reduce crypto crime is an improvement of the security nature of exchange platforms and crypto wallet..

squatter

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STOP SNITCHIN'

Quote from: dothebeats on October 06, 2019, 10:38:18 AM

The insurer is, at most at risk here, given the vulnerabilities of some systems and the lack of sense of security some individuals have.

Any risk is justifiable if the premiums are high enough. Any prospective policyholder's system would also be thoroughly vetted by the underwriters. I believe that insurers will dip their toes in the water by further pooling the risk. For example, Coinbase's current policy for its hot wallet storage has multiple underwriters.

Regular people like you and me would never qualify for insurance like this. It's for large scale custodians or extremely high net-worth individuals who can afford the extremely high premiums.

ILuckyGuyI

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Unfortunately, huge amounts of digital money has been stolen until now. Some measures must be taken and I think 'crypto insurance' could be one of them. By means of 'crypto insurance', people won't be a victim of these actions.

gabbie2010

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Quote from: senne on October 06, 2019, 10:30:02 AM

Crypto crime rate has increased significantly. An article in Cointelegraph stated that criminals have stolen around $4.5B worth of digital currency in the first half of 2019 alone.^[1]
"The growth in popularity of cryptocurrencies has, in many ways, outpaced the infrastructure built to support it." ^[2]
Exchanges which control most of the trading volume and also act as a storage place for cryptocurrency have become an easy target of hackers. So, could insurance be a promising sector in cryptocurrency or there are drawbacks to it? What could be the challenges for both the insurer and the insured?

^[1]https://cointelegraph.com/news/cyber-criminals-netted-43b-from-crypto-related-crime-in-2019-study
^[2]https://cointelegraph.com/news/crypto-insurance-a-promising-sector-despite-caution-of-major-players

The chances of survival of such crypto insurance will not be guaranteed due to the high risk involved in crypto system, so many hacking and stealing millions of bitcoin lately while any organization that will take the bull by the horn and embark on such an adventure be in for a very difficult task while the insured will not border about spending millions of dollars to fortify their security systems after-all insurance had covered any stealing while the insurer is in for a very difficult challenge in an event of stealing or hacking of the insured.

erikalui

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Exchanges don't have a long life so definitely the insurer would suffer huge loses as they won't be getting enough premium to even cover the damages caused by hacks and plus proving it is not an inside job is tough where crypto is concerned. I read about insurance companies charging 5% as premium and insuring upto $250000 but if the exchange gets hacked before 10 years, these companies will be in severe loss and exchanges are always at high risk. Insurance is good to have but when exchanges make sure they maintain high security and cannot be hacked easily while even a big exchange like Binance cannot claim they are secure while having a hot wallet.

uray

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Quote from: senne on October 06, 2019, 10:30:02 AM

Exchanges which control most of the trading volume and also act as a storage place for cryptocurrency have become an easy target of hackers. So, could insurance be a promising sector in cryptocurrency or there are drawbacks to it? What could be the challenges for both the insurer and the insured?

If there is a real threat with hackers targeting the exchanges and no one is able to take care of the security then which insurance company will come forward to risk that much, Insurance companies will not come forward if there is a high risk involved and billions are lost because of hackers in the market and no company will accept these high risk business. Regulators must keep a security deposit on the amount of trade volume and if that happens then we might not see exchange hacks in the future Cheesy

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fiulpro

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I don't think insurance can be a big thing for cryptocurrencies personally because the company cannot predict what can happen and what can't .. we see 100% loss instantly , it's not something that can be defined by any policy ;the risk factor is too high therefore am not really sure why would a company provide insurance for this ...
Who knows.. ?

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