Breach Insurance, a Boston-based crypto insurtech that provides insurance technology and regulated insurance products for the cryptocurrency market, announced the launch of Crypto Shield. The retail crypto investor product covers theft of crypto while in the custody of qualified exchanges.
The industry-first insurance product is available for over 20 cryptocurrencies to consumers using Binance US, Coinbase, CoinList, and Gemini. Crypto Shield is backed by an insurance carrier that has earned a financial strength rating of “A-” (Excellent) from A.M. Best, the largest credit rating agency specializing in assessing the insurance industry.
“For a market as large as crypto, there is a huge gap in availability of insurance for both retail and commercial customers. Crypto Shield is an innovative, first-of-its-kind product that directly addresses this market gap. CoinList is proud to be in the launch cohort alongside other trusted exchanges like Coinbase, Gemini, and Binance US,” said Scott Keto, COO of CoinList.
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The number of Americans who own crypto recently exceeded 30M and the increased adoption of the technology has led to a surge in hacks. Since 2011, over 60 exchange hacks occurred, compromising over $60B in crypto to date. According to a report from Atlas VPN, $3.8B in crypto was stolen in 2020, and the frequency of hacks has increased dramatically, with 2020 accounting for 33% of hacks all-time. Crypto Shield was developed to provide consumers with an alternative to FDIC and SIPC coverages, as these protection layers are unavailable for crypto investors.
“We are proud to offer consumers a regulated crypto insurance solution that protects policyholders from real financial risks. Breach is on a mission to create new insurance capacity and products for the crypto economy, and the release of Crypto Shield is a major milestone in that mission,” said Eyhab Aejaz, CEO and Co-Founder of Breach Insurance.
“Eyhab’s deep roots in insurance have helped surmount uncharted crypto insurance hurdles – in full compliance with stringent regulatory frameworks. His team is unrivaled in its execution of ambitious product roadmaps – and in its keen eye towards the high standards of re/insurance partners and insurance regulators,” said Don Stalter, GCF partner and North America lead.
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Breach Insurance selected Boost Insurance as its infrastructure partner to bring this product to market, building a fully digital experience for customers to insure their crypto. With its insurance infrastructure-as-a-service (IaaS) platform, Boost was the ideal partner to deliver this first-of-its-kind product to the market.
“My team and I are happy to partner our infrastructure with Breach’s vision for the first crypto insurance for retail wallet holders,” said Alex Maffeo, CEO and Founder of Boost. “Our goal is to not only make insurance more convenient and accessible for end-users but also to assist innovative players like Breach in developing new insurance products for presently underserved markets.”
Breach, through its proprietary insurtech platform, provides policyholders with a fully digital experience, allowing consumers to easily purchase policies, make changes, and submit claims. Crypto Shield is now available in California, Illinois, Massachusetts, Michigan, New York, New Jersey, Nevada, Pennsylvania, Texas, and Washington.
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