BMA awards licence to cryptoasset insurer Evertas
Evertas, a cryptoasset insurance company, has received its licence from the Bermuda Monetary Authority to commence operations in Bermuda as a class 3A insurer.
Evertas will commence issuing policies for theft or loss of cryptoassets, and hopes to secure a rating within three to five years. It will insure institutional holders of cryptoassets, including exchanges, custodians, traditional financial institutions, funds, family offices and ultra-high net worth individuals.
Policies will specifically look at covering the loss and theft of private keys, representing the ownership of cryptoassets, which can result from physical theft, cyberattacks and hacks, social engineering and natural disasters.
Evertas will insure risks that are complementary across its carrier partners, working with them to address what it called “the dramatic lack of capacity for cryptoasset risks.”
Cryptoassets are a new and rapidly expanding asset class with a total market capitalisation of $300 billion. Due to the highly specialised nature of underwriting the risk associated with crypto assets, there are very few insurers currently operating in this sector. Evertas will offer a complete end-to-end product for cryptoasset insurance from underwriting, to crypto-forensics and claims handling.
Artex Risk Solutions (Bermuda) serves as insurance manager and principal representative in Bermuda.
J Gdanski, chief executive and founder of Evertas, said: “There are many indications of the cryptoasset market maturing rapidly. This includes developments around regulation, the emergence of self-regulatory organisations and of new exchanges, custodians, banks and funds.”
Evertas has a unique position in the market for this cryptoassets, Gdanski said, because it is the only dedicated insurer providing third-party risk insurance with a vetted underwriting framework and in-house claims handling. ”The previous lack of a full-service insurance company in this market has limited its growth,” Gdanski added.
Raymond Zenkich, Evertas’ president and chief operating officer, said: “Bermuda has established itself as one of the leading and most reputable jurisdictions for the blockchain and cryptoasset sectors. With its business-friendly environment, sophisticated and efficient regulators, cryptoasset and blockchain regulatory framework and strong insurance operations, Bermuda was the ideal choice for our company.”
Bermuda Premier David Burt welcomed Evertas to Bermuda. “They make a great addition to our developing ecosystem,” he said. “Their extensive experience in the digital asset space is a considerable strength. It lends itself well to understanding the risks of the industry and providing much needed coverage to the digital asset businesses that choose to make Bermuda their home.”
Andy Burrows, chief executive of the Bermuda Business Development Agency, praised Evertas’ leadership for its in-depth understanding of risk and digital asset technologies. “Their decision to choose Bermuda reflects the strength and quality of the jurisdiction and its gold-standard framework for established and emerging global industries, facilitating commercial growth and innovation,” he added.
Sandra Ro, chief executive officer of the Global Blockchain Business Council (GBBC) and advisor to Evertas, said: "The GBBC works to bring together trusted stakeholders in cryptoassets and blockchain technology to grow and advance a multi-trillion dollar industry in the making. We are thrilled to see GBBC members Evertas and the Government of Bermuda working together to pioneer and develop solutions and services in a much-needed insurance vertical."
