Insurance and the crypto market
As the number and type of internet-connected devices increases, insurers are able to gather and analyze the behavior, actions, and choices of their customers more accurately than ever before.
The growth in popularity of cryptocurrencies has, in many ways, outpaced the infrastructure built to support it in terms of security, cryptocurrency exchanges that serve both as a marketplace and a store of the digital assets have become a hacker’s favorite target. Now that the cryptocurrency capitalization is earmarked to surpass over a $1 trillion, the demand for the crypto-based insurance products is more important than ever before.
The widespread adoption of new consumer technologies across multiple industries has generated a new set of demands and expectations for insurance solutions and interaction channels. However, insurance brokers & aggregators are still experiencing multiple operational barriers and challenges. This can be attributed to an internally focused business that has not been subjected to the same level of consumer pressures that other customer facing sectors.
Since 2019, at least 10 crypto exchanges have reported a large-scale hacking attack on their platforms. One of these is Bittrue — a Singapore-based cryptocurrency exchange that lost about $5 million in XRP and Cardano. With millions at stake, not to mention a growing cryptocurrency market capitalization, the insurance industry can provide a safety net for crypto investors. Traditional insurers can restore investor confidence in cryptocurrencies as a store of value.
No federal FDIC insurance policy exists to protect users from loss as it does with fiat. The reality is that crypto demands a high level of personal responsibility managing one’s own money independent of any centralized entity means that you’re entirely responsible for all scenarios.
The Crypto world is yet to establish an online insurance marketplace. Adding to the current situation identified, there are no policy management platforms within the crypto space. For Polkacover to successfully launch decentralized technologies capable of solving the problems endemic to the crypto industry, Polkacover had to start with solid corporate fundamentals. These fundamentals include building a recognized brand, working with a world-class founding team, acquiring a robust user base. And complement it with an ever-improving insurance purchase experience made possible vs any traditional distribution model.
