OneDegree to launch digital asset insurance with Munich Re
The crypto space and its adoption grow from day to day. Digital assets have already found their place onto many balance sheets of institutional investors and corporations. Currently, only 1.5% of assets held by global exchanges and custodians are insured.
Hong Kong insurer OneDegree has announced a deal with one of the world's largest reinsurers, Munich Re, in order to offer a new digital asset insurance product.
The product is named OneInfinity and will be targeted toward digital asset trading platforms, custodians, asset managers, and technology providers.
Munich Re will provide reinsurance. This means they will act as the insurance on insurance companies. This will ensure that the insurance company remains solvent even if they have to deal with large payouts.
OneDegree runs "risk-based analysis", explained by Becky Tam, the firm's General Manager of digital assets. This analysis covers everything from cyber security, and operations, to personnel management.
"It's just like how if you are a heavy smoker and drinker you will struggle to buy medical insurance", she said. "Not everyone that comes to us can get insurance.
Regarding DeFi projects the company hopes to be able to insure them soon, after it further studies the market