Blockchain, Cryptocurrencies and Initial Coin Offerings Insurance Solutions
Emerging risks require innovative solutions to protect our clients.
Much attention is being given to blockchain, cryptocurrencies, and Initial Coin Offerings (ICOs) – and with good reason. Blockchain use cases are growing across a variety of industries; cryptocurrency prices continue to be volatile; and startups continue to announce ICOs as alternative means of raising capital, even amidst regulatory investigations.
As technology continues to transform financial services, both early-stage and established institutions must evaluate the role blockchain, cryptocurrencies, and ICOs may play in their business’ strategy. With the excitement and opportunity surrounding these technologies, there is also potential for volatility and uninsured risk.
New exposures emerge as companies utilise or develop their own distributed ledger-based solutions and client offerings. Risks will vary depending on the structure and features of the blockchain.
As cryptocurrencies become more prevalent in financial services across established platforms for trading, futures, derivatives, and payment processing, companies are seeking insurance solutions.
Initial Coin Offerings
Many companies have utilised ICOs as an alternative mechanism for raising capital. While ICOs are an innovative way for startups to access funding, there are regulatory questions that impact these companies, their boards, and investors.
Aon has recognised the growing exposures and limitations of traditional insurance. Aon has been working to understand these evolving technologies and actively collaborates with the insurance marketplace to develop innovative risk transfer solutions. We have worked with a number of emerging companies providing bitcoin depository services and have designed insurance products to help protect against internal and external theft.
If you have any questions about your specific coverage, or are interested in obtaining coverage, please contact one of our brokers.