Hong Kong insurer company OneDegree established a partnership with Munich Re to provide insurance for crypto companies.
Crypto adoption rapidly increases and also increases associated risks like hacking attacks. Even at this age, many crypto companies are active as a newbie in terms of security and from time to time they are introducing better security features & updates to reduce the chances of risk. Similar kinds of many other risks are also associated with Crypto, which can be solved with a better collaborative approach from every sector’s talent with each other.
OneDegree, a Hong Kong-based insurance company, announced its tie-up with Munich Re, one of the world’s leading reinsurer companies.
Under the collaborative approach, these two companies will provide insurance product services for digital assets-based businesses.
To attract digital asset trading platforms, custodians, asset managers, and technology providers for the insurance services, OneInfinity will work dominantly.
And to ensure the insurance product service, reinsurance service will be provided by Munich Re to convince the crypto Companies or service providers that they will remain in a better situation in case of high payout on insurance.
Insurance and reinsurance services are playing significant roles in the business sectors but in the crypto industry, it is very risky for insurance service providers because the chances of hacking attacks remain high, and also in some situations, crypto companies lose a very large amount of funds.
Becky Tam, the firm’s General Manager of digital assets, commented on this new product service and noted that they are giving insurance services even to those who are on the verge of high life.
” (it is) risk-based analysis that 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….(..)…Not everyone that comes to us can get insurance.”
It is worth to note that company clearly stated that its insurance product service will not remain available for Defi projects but in future they may consider for same.