Liberty Specialty Markets Introduces Crypto Insurance for European Financial Institutions
Liberty Specialty Markets (LSM), a division of Liberty Mutual Insurance Group, has announced the launch of a specialized insurance product designed for financial institutions operating in the rapidly evolving cryptocurrency market. This new offering is specifically tailored for European crypto-asset service providers who comply with the EU’s Markets in Crypto-Assets directive, a regulatory framework aimed at establishing uniform rules and enhancing investor protection.
The insurance product provides coverage for various risks associated with cryptocurrency operations, including professional liability, management errors, theft, and fraud. With coverage limits of up to €3 million, this product is poised to support a wide range of financial institutions, from traditional banks and asset managers to blockchain startups.
The development of this product is a response to the growing demand from the financial sector, which is navigating ongoing uncertainty due to rapid macroeconomic, regulatory, and technological changes. LSM’s extensive experience in the European financial institutions’ insurance market, spanning over two decades, has enabled the creation of this specialized product.
Jorge Chao, head of financial institutions at LSM Europe, commented, “The crypto revolution presents significant opportunities as increasing adoption redefines economic and financial relationships worldwide. However, the complex risks associated with it are a major strategic issue for financial institutions. Our new product has been meticulously crafted in collaboration with our cyber and technology teams to address the knowledge gaps that can hinder crypto insurance propositions, enabling clients to pursue opportunities in the fast-developing crypto market with confidence.”
This latest offering extends LSM’s existing range of insurance products for financial institutions, which includes bankers’ blanket bonds, professional liability, and D&O insurance. By providing comprehensive coverage for crypto-related risks, LSM aims to support the growth and stability of the cryptocurrency market in Europe.
