Crypto Insurance Policies ‘Popping Up’ to Meet Frenetic Demand

Companies this year are scrambling to obtain cryptocurrency insurance as a hedge against catastrophic losses, paying dearly for relatively limited protection as they venture into the world of high-risk, high-reward digital assets.

“We’re seeing crypto risk and coverage inquiries from all kinds of companies,” said Jackie Quintal, a director at insurance broker Marsh McLennan. “Crypto is popping up all across financial services, tech, fintech, and other parts of the economy.”

Demand now far outstrips supply—less than 2% of crypto-related risks are currently insured, said Edin Imsirovic, associate director at insurance credit rating agency AM Best—so those willing to sell policies ...