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>> Global insurers are stepping into the rapidly growing crypto currency market as hackers prove a major headache for investors. Some have already lost billions from cryptocurrency hacks, technical errors and alleged fraud. But offering protections for investors and potential clients won't be easy for insurers, says Reuters reporter Suzanne Barlin.
>> One challenge for insurers is not being able to look back on prior losses because they're dealing with a brand new risk. And they have to figure out how to price that risk. Unlike say, the weather, where there's a hurricane and a history of losses in South Florida, there's nothing like that here for the cryptocurrency space.
>> Some insurers are also concerned there may be not enough cryptocurrency insurance buyers for premiums to cover losses. But as the cryptocurrency industry continues to grow, insurers can't ignore it any longer.>> Financial institutions of all sorts have insurance that protects them against certain types of theft. And as the cryptocurrency industry does not go away and it's becoming a more legitimate fall of the financial system.
More investors and customers are going to be looking for similar protections that a more traditional financial institution has.>> So far, only a few companies are daring to sell cryptocurrency insurance, including Excel Catlin, Chub and Mitsui Sumitomo.