For many of us, insurance is a necessary evil.
Whether you’re insuring your health, your car, or anything else, coverage is often expensive… filing claims can be a hassle… and you’re often paying for a service you hope you’ll never need.
Despite the costs and hassles, we still spend the money to insure our health and possessions against damage and risk… And nearly every major industry offers some form of insurance protection.
Today, we can add cryptos to that list…
U.K.-based Lloyd’s of London (founded in the late 1600s) has teamed up with underwriters and experts to create the first-ever crypto-oriented insurance policy. The plans will cover and protect against hacking attacks, as well as both physical and digital theft of crypto wallets.
(Think of it like the Federal Deposit Insurance Corporation [FDIC] for U.S. banks… giving banking customers peace of mind to deposit funds and use those services.)
New crypto exchanges, trading platforms, and even debit cards are making it easier for individuals to invest in and use cryptos as they would cash or credit… and centuries-old insurance giants like Lloyd’s wouldn’t enter the space if it didn’t think there was a future or potential for profit.
Insurance isn’t charity, after all… if you’re insured by a company, it’s partly because they expect you’ll pay them more than you’ll cost them. So if Lloyd’s is willing to put its reputation and money on the line to alleviate the risk for crypto investors, it won’t be long before competitors create their own plans.
As more insurance companies and financial institutions work to integrate cryptos into their business model, it’s only going to get easier to buy and use cryptocurrencies. Here in the U.S., you can already buy a handful of cryptos through Coinbase with a credit card in just a few easy steps.
We’re still in the early innings of this new and exciting asset class… And as more banks, insurance companies, and financial institutions sign on, mainstream crypto adoption will continue to gain momentum… Lloyd’s of London is only the beginning.