Insurance companies deny or limit coverage for customers exposed to FTX because of fear of risk

The consequences of FTX are not yet fully understood. Insurance companies have refused or limited coverage to customers who come in contact with the bankrupt cryptocurrency exchange. This leaves traders and crypto traders uninsured for any losses resulting from theft or litigation. Experts from the Bermuda and Lloyd’s of London insurance markets are asking crypto companies for greater transparency about their exposure to FTX. Insurers are also proposing broad exclusions policies for any claims arising out of a company’s collapse. Experts from the Bermuda insurance market and Lloyd’s of London (SOLYD.UL), have asked crypto companies for greater transparency about their exposure to FTX. Hugh Wood Canada Ltd president Kyle Nichols said that insurers are asking customers to complete questionnaires asking them if they have any assets or invest in FTX. The insurer also suggested policy exclusions that would exclude coverage for any claims arising out of the collapse of FTX. This includes digital asset protection, directors’ personal liability, and executives of cryptocurrency trading firms. Insurers and brokers believe that exclusions can act as a failsafe and make it more difficult for companies seeking coverage. Relm, a crypto insurer based in Bermuda, provides coverage for entities linked to Sam Bankman Fried’s exchange. However, it takes a stricter approach.
“If we have crypto exclusions or regulatory exclusions, we won’t offer the coverage.”
Joe Ziolkowski, co-founder of Relm, stated:DISCLAIMER. The information on this website is intended to provide general market commentary but not as investment advice. We encourage you to do your own research before investing.Join us to keep track of news: coincu.comFoxyCoincu NewsTags: # Cryptocurrencies#MarketsbankruptcyBlockchaincryptoFTX