The hacking of cryptocurrency wallets and accounts is not unpopular these days. The recent victims are Zaif cryptocurrency exchange which lost $60 million through a hack last month, and there is even a hacker who said he will on October 12 live-stream a hack on a platform. The anonymous twitter account by the name GeoCold announced this week that he would carry out and stream live on Twitch, a 51 percent attack against altcoin Einsteinium. He wants to demo how easy it is to take over a blockchain with a few dollars of rented hardware to achieve two goals.
But you can now buy insurance for cryptocurrency savings at CryptoIns using Bitcoin, Ethereum and other more than one hundred cryptocurrencies supported. The service, which is operated by Swiss insurance broker ASPIS SA, is first of its kind to offer insurance for personal accounts on cryptocurrency exchanges and in wallets.
The service protects all cryptocurrencies and is meant to provide confidence for both novice and experienced traders and investors and hopefully attract new audience according to CEO of CryptoIns Timofey Volkov.
Insurance for your cryptocurrency savings means your assets will be compensated in full in the event of loss of the assets either by way of hacking or other eventualities. Compensation decision is made 30 days of application of an insured event or eventuality while the payment is made within 5 days of making this decision.
The insurance policy also covers the risk of losing assets as a result of an exchange completely shutting down and malicious actions by members of the staff leading to a collapse of the exchange or in case of bankruptcy or termination. It also covers theft, fraud, illegal actions of personnel, management or owners of a crypto exchange. But there is a list of events not covered by the policy and clients will need to undergo KYC to get compensation.
Once an event happens, the losses are calculated and compensation paid in BTC. All cryptocurrencies are insured with the value insured recalculated at insurance time in BTC for convenience. And it does not exclude growth of the value of cryptocurrencies. For instance, if the value of the insured cryptocurrency grows, they will pay more in insurance payments in case of an eventuality. However, the maximum amount of payment is equal to the amount of liability purchased under the policy.
With CryptoIns, you simply open the website and choose the accounts in an exchange or wallet you want to insure. Currently, the service is available for 28 different exchanges and wallets including Binance, Bitfinex, Bitstamp, Kraken, HitBTC, Bithumb, Coinexchange.io. ShapeShift, Cobinhood, Coincheck, YoBit, Bittrex, Poloniex, MEW, Ledger, Trezor and a new host of accounts.
The default insurance policy period is 90 days or 365 days but can be extended. The price of an insurance policy will depend on the size of the insured cryptocurrency portfolio and the reliability of the exchange or wallet hosting the account you want to insure. The reliability is accessed by a proprietary scoring model. You can also calculate the cost of your protection by using their calculator on the website. Their Insurance Fund, which is obtained from the sale of crypto insurance policies, and is constantly growing.
Once you signup, select accounts or wallets to ensure and calculate costs, payments are made via Coinpayments gateway in the personal account on the website.
However, the maximum amount of funds that can be insured per one exchange is only 15 BTC per exchange and you can ensure assets on several exchanges with a total of up to 15 BTC, but they will be increased in the future. Further, the limit per each insured event is $7'000'000.
The insurance payments are guaranteed by top global re-insurers and insurance certificates issued by Selecta Insurance and Reinsurance Company (Caribbean) Limited, a licensed insurer. Selecta is an insurance company that is legally able to receive insurance premiums, maintain reserves and disburse insurance payouts in the form of cryptocurrencies. It has a partnership with AIG, one of the ten largest insurance companies in the world.
According to their own website, more than 50 plus cryptocurrency exchanges failed while 19 have been hacked since 2011, with over 1.2 million of Bitcoins lost from these activities. The frequency of attacks has increased by 36 percent every quarter.
According to Cragnews and CoinSpeaker, Timofey Volkov said that the company is sure that insurance for cryptocurrencies was the "next necessary step on the path" for mass adoption of the tech all over the world.