Beazley appoints former Direct Line CFO and Microsoft UK COO to enhance board’s skills

Reizenstein formerly held the role of chief financial officer of Direct Line Insurance Group. He brings extensive financial services experience across …

Beazley appoints former Direct Line CFO and Microsoft UK COO to enhance board's skills

istock / Jirsak

Specialty insurer Beazley has appointed Nicola Hodson and John Reizenstein as non-executive directors as it looks to “enhance the board’s skills” in the areas of technology, data and operations.


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Beazley, Appointment, Nicola Hodson, John Reizenstein, Board, Risk committee, David Roberts , Insurance, London

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Hiscox, Lloyd’s Broker Given Time To Settle Insurtech Row

Law360, London (April 9, 2019, 6:22 PM BST) — A London judge has delayed a £1.1 million ($1.44 million) lawsuit between Hiscox Ltd. and a Lloyd’s …

By William Shaw

Law360, London (April 9, 2019, 6:22 PM BST) — A London judge has delayed a £1.1 million ($1.44 million) lawsuit between Hiscox Ltd. and a Lloyd’s of London broker over the use of insurance technology to arrange motor cover so…

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Coinbase Discloses Details Of $255 Million Crypto Insurance Coverage

Major U.S. cryptocurrency exchange Coinbase has revealed that its customers’ cryptocurrency held in the exchange’s hot wallets is covered for a …

Major U.S. cryptocurrency exchange Coinbase has revealed that its customers’ cryptocurrency held in the exchange’s hot wallets is covered for a reported $255 million.

The details of this insurance coverage were disclosed by Coinbase’s VP of security Philip Martin in a blog post published on Tuesday, April 2.

The exchange reportedly holds around 2 percent of its customers’ assets in hot wallets while the rest (98 percent) are secured offline in cold storage, where exposure to third-party attacks like hacks is significantly minimized.

Lloyd’s of London

Martin notes in his blog post that the $255 million limit policy was placed by Aon, a Lloyd’s of London registered broker and “sourced from a global group of U.S. and U.K. insurance companies, including certain Lloyd’s of London syndicates.”

The Coinbase chief security officer did not, however, provide the names or such other details of the specific underwriters.

Lloyd’s of London, which continues to open up the insurance space for crypto and is highly regarded, isn’t your typical insurance company. It is, as Martin notes, a kind of insurance marketplace that brings together multiple underwriters who work in syndicates. Together, the syndicates pool resources and thus help in spreading the risk.

Apparently, Coinbase has had an insurance policy cover for funds in its hot wallets since November 2013, particularly to safeguard against what is viewed as the biggest risk facing customer assets- losses resulting from hacking.

Coinbase’s revelation comes less than a month since crypto security firm BitGo announced it would be offering an insurance cover of up to $100 million for assets in cold storage. BitGo also revealed that it would use Lloyd’s of London underwriters.

BitGo’s VP of Marketing Clarissa Horowitz noted that Coinbase’s move brings more transparency to the digital assets space, a fundamental step towards building trust within the industry.

Crime vs. specie insurance

Crypto insurance covers fall in two classes- that which covers the hot wallet and that which covers cold storage. Specifically, the two classes are provided by the crime and the specie insurance markets.

According to Martin, crime policies provide insurance to “value in transit,” which would in traditional markets, cover things like theft at ATMs or from armored vehicles. In the world of cryptocurrency, crime insurance covers losses occasioned by hacking, insider theft cases, or fraudulent crypto transfers.

In contrast, policies within the specie market cover what is known as “value at rest,” including things like fine art and precious metals stored in a vault.

In crypto, specie policies specifically provide cover against physical damage or the loss of client private keys stored in cold storage. Included here would be cases of employees misusing the data or stealing.

As such, there is a big difference between “value in transit” and “value at rest,” meaning that Specie policies would, for instance, not cover funds lost as a result of on-blockchain failures like vulnerability in smart contract Multisig implementations.

While suggesting that a lot still needs to be done to open up the crypto insurance space, Martin advises that it would be better to focus on assets held in hot wallets and not in cold storage, as the latter holds assets not exposed to much risk.

Notably, Martin suggests that to open the crypto insurance space further would need policies to be written, not just to exchanges or custodians as is now, but directly to those who own the cryptocurrencies.

He noted:

“We need a world where the ultimate owners of cryptocurrency are able to directly insure their assets stored with trustworthy, well-reviewed, transparent service providers.”

The crypto insurance space has begun attracting some of the major insurers around the world, including companies like the XL Group, AIG, and Allianz.


Disclaimer: This is not investment advice. Cryptocurrencies are highly volatile assets and are very risky investments. Do your research and consult an investment professional before investing. Never invest more than you can afford to lose. Never borrow money to invest in cryptocurrencies.

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Coinbase Reveals Extent of Crypto-Insurance Coverage

The major cryptocurrency exchange Coinbase has revealed the extent of its insurance coverage in an official blog posted by Philip Martin, the …

The major cryptocurrency exchange Coinbase has revealed the extent of its insurance coverage in an official blog posted by Philip Martin, the company’s Chief Information Security Officer. This is a rare step in transparent disclosure in an industry that is notoriously opaque about its operations.

Insurance for Hot Wallet Crypto Holdings

According to the post, Coinbase has a $255 million insurance coverage for its hot wallet holdings provided by a broker registered with Lloyd’s of London. This policy has been in place since November of 2013. It was done, according to Martin, to protect especially against theft due to hacking, as this is the highest-risk loss scenario for cryptocurrency exchange customers.

Martin stated that the policy had been placed by Aon, which is a Lloyd’s registered broker, and has been sourced from a global group of insurance companies based out of the US and UK. Some of these companies include some of Lloyd’s of London’s syndicates.

Martin further clarified that Lloyd’s was not in itself an insurer. Rather, it functioned more as a partially-mutualized marketplace for insurance. In this marketplace, underwriters that are grouped together in syndicates connect to pool as well as spread insurance risk.

Two Classes of Insurance

The two classes of insurance that Coinbase has taken policies for are the Specie and Crime marketplaces. Specie insurance is specifically for physical damage or the loss of private wallet keys, including losses incurred by employees of the exchange.

The second type of insurance, Crime, focuses on losses that could be incurred by insider theft, hacking, fraudulent transfers of fiat or cryptocurrencies, and so on.

Changelly - Exchange cryptocurrency at the best rate

Martin explained that the difference between the two types of insurance. He said that Crime covers value in transit, while Specie covers value at rest.

The head of information security further clarified that Coinbase determined its coverage by focusing on enough Crime coverage so that all its hot wallet holdings were fully covered. The company also accounted for a buffer for asset volatility. He also said that the company did not promise any preferential payouts of insurance to customers, which in insurance parlance is known as First Loss Payee status to special customers.

Insurance Coverage from Other Insurers

Coinbase is not the only company in the crypto industry to have gained insurance cover. A crypto-custody platform created by Kingdom Trust, a US-based custodial firm, had been insured by an undisclosed insurer who was also a part of the Lloyd’s of London marketplace.

Major insurance companies such as Allianz, AIG, XL Group and Chubb are also reported to be tailoring their insurance policies to target crypto businesses.

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Inaugural “Sea: The Future” Conference to Discuss New Maritime Challenges, Technologies and …

Based in Tel Aviv and London, Windward is backed by world-renowned investors, including XL Innovate, Aleph, Horizons Ventures, Marc Benioff and …

– Conference, organised by Windward, will take place at Trinity House, London, on May 22

– Confirmed Speakers include Lord Browne, XL Innovate’s Tom Hutton, SOA’s Daniela Fernandez

LONDON, March 6, 2019 /PRNewswire/ — Windward, a world leader in maritime risk analytics, today announced plans to hold a conference on May 22 called Sea: The Future, focusing on challenges, technologies and solutions for the maritime ecosystem.

Confirmed speakers include former BP CEO, The Lord Browne of Madingley; XL Innovate Managing Partner, Tom Hutton; Lloyd’s Register CTO, Nial McCollam; BLOC CEO Deanna MacDonald; Aon CEO of Commercial Risk Solutions, Lambros Lambrou; EY Vice-Chairman, Shaun Crawford; and Sustainable Ocean Alliance (SOA) Founder & CEO, Daniela Fernandez.

Ami Daniel, Co-Founder and CEO of Windward, said: “For too long, the maritime industry has shied away from publicly discussing the challenges and tough choices it faces. The Sea: The Future conference aims to change that. it’ll bring together senior executives and decision-makers from disparate parts of the maritime ecosystem to share ideas and expertise; and discuss how new data, new technologies, like AI, and new approaches can help us interact with the seas in a more efficient, profitable, safer and sustainable way.”

L1 Energy Executive Chairman, Lord Browne, said: “Engineering has always enabled humankind’s relationship with the sea; from the building of the first sailing ships to the automated systems that choreograph today’s vast seaborne trading network. That is why I am delighted to take part in an event which explores how future innovations will shape the maritime world.”

Lloyd’s Register CTO, Nial McCollam, added: “Lloyds Register has helped shape the shipping and maritime world for over 250 years – undoubtedly we are in a period of intense change driven by geopolitical, economic, technological and environmental factors. For this reason there is an even greater imperative to facilitate higher levels of collaboration. Sea: The Future is a great way of achieving this.”

Sea: The Future will hold its inaugural event at Trinity House, a Grade I listed, neoclassical building whose rich maritime heritage and focus on the safety of shipping make it an ideal setting for this event.

For more information, see: www.seathefutureconference.com

About Windward

Windward partners with organizations to help improve their understanding of maritime risk, enabling them to take better actions to manage it. The company’s unbiased, data-driven risk insights are based on actual ship operations. They’re available on-demand, helping customers make the best decisions. Based in Tel Aviv and London, Windward is backed by world-renowned investors, including XL Innovate, Aleph, Horizons Ventures, Marc Benioff and Lord Browne. To learn more, visit: http://www.wnwd.com

Contact: media@wnwd.com

SOURCE Windward

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