Evertas will soon launch a Managing General Agent (MGA) that specialises in cryptoasset-related theft/loss coverages.
According to Evertas, an MGA is a specialised insurance agent or broker that has been granted underwriting authority by an insurer and can administer programs and negotiate contracts for an insurer.
The new functions include binding coverage, underwriting and pricing, settling claims and appointing retail agents in a certain region. MGA manages all or part of the insurance business of an insurer and acts as an agent or broker, working as an intermediary between insurers and agents, and insureds.
Evertas specialises on the underwriting of cryptoassets insurance and has the only cryptoasset-specific MGA on the market.
An estimated $75bn of crypto assets are held by institutions and will be expected to rise to more than $135bn over the next three years.
Only a small handful of carriers and brokers are actively able to service this market, according to Evertas. The focus is not exclusive on cryptoasset insurance and the coverage only consists of a small fraction of total inured’s assets held.
Evertas CEO and founder J. Gdanski said: “The time is now to start expanding the insurance infrastructure that the cryptoasset space so desperately needs in order to continue growing.
“Evertas is looking to partner with an insurance company who also recognises the market opportunity and who would provide insurance capacity of up to $50 million per policy. It is in discussions with several insurers and plans to announce a carrier partner later this year.”
Evertas president and COO Raymond Zenkich said: “The cryptoasset market size is small today vis-à-vis other asset classes. While the current market totals around $200bn today, we estimate it will grow to $1trn over the next five years as institutional investors continue to increase their exposure in the market.
“We hold a unique position in the sector today as we are the only company focused exclusively on the underwriting of cryptoassets and insurance for institutions such as custodians/exchanges, traditional financial institutions, crypto funds, traditional funds, market utilities, and family offices.”