JUST IN: has revealed the details of its $255 million insurance policy for crypto held on customers' behalf. ow.ly/7Dbe50oSR3i reports
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I read the piece, and the original post but I'm still left wondering what the terms actually are. Do you have any of the specifics of the coverage? In what scenarios does it pay out? What scenarios does it not pay out? How is the reader/user supposed to be able to judge value?
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Hi Jesse, I would suggest taking to Aon
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Thank you for the suggestion. Here's a story idea for you: reporter does some investigative journalism and actually checks out a story, gets critical details important to readers, left out of original adapted PR fluff piece.
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Thanks for that. I’m no expert on insurance but from speaking to people, the absence of significant claims history means the insurance industry can’t give you straight answers to those questions
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But the insured certainly can, right? They're marketing this product which they paid for so they must be able to get specific.
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Yep it’s a good subject to dig into, and remiss of me not to find concrete specific details as you say. So, would you like to start?
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Kraken doesn't have any insurance on crypto. So, we'd have to cover losses from the balance sheet (basically, self-insurance). I'm very skeptical of the value of 3rd party insurance anyone claims to have because in our investigation, they don't protect against real crypto threats
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I see. guys like yourself and others who are self-insuring should get together and pool new insurance products (like Lloyd's did 200 years ago) -- see for how to do this.
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This would not be possible among peers in this industry due to the depth of audits that would need to be done by competitors, the amount of confidential/trade secret information that'd have to be revealed, the huge variance in investment in security and extreme risk.
These sort of problems have been overcome before, eg with independent experts, but it isn't easy, I acknowledge that. Consumers would benefit immensely from genuine protection, in my mind it's worth trying.
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A lot of things would need to come together. I think the largest exchanges would prefer to self insure and the smaller ones would not be able to afford the audits. For us, it wouldn't be worth trying but we'd consider any proposals if someone decides to take up the project.
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