One of the biggest issues to insure the institutional participation in the cryptocurrency/digital asset sector really gets to its full potential is custody. Third party cold wallets are currently the most secure places to ‘store’ cryptoassets and now that storage can be insured. Swiss financial technology company METACO announced that Aon has arranged a syndicate of London insurers to offer a crime insurance product which will help reduce the risk of loss and damage. Of course that will certainly increase the cost of institutional transactions and storage, but it helps eliminate a huge concern regarding hacking. Another step forward in the cryptoasst sector. More below.
Bill Taylor/Fintek Capital
“METACO and AON announce an insurable crypto asset storage technology for banks
A panel of London insurers arranged by Aon will offer an insurance product to clients using SILO, METACO’s crypto asset storage technology for banks.
Lausanne/London, 11 June 2019 – Swiss financial technology company, METACO, has announced today that a panel of London insurers arranged by global professional services firm Aon will offer a crime insurance product to clients using SILO – METACO’s integrated hot-to-cold wallet management solution for financial institutions – which can help to protect their digital assets from the losses resulting from loss, damage, destruction or theft.
Today’s announcement follows a rigorous assessment of SILO’s security model, which tightly combines purpose-built, tamper-proof hardware and software security, and makes METACO’s solution the world’s first self-custody technology platform to achieve this distinction.
The implications of this new crime insurance product for SILO, and for the rapidly increasing number of financial institutions looking at crypto asset self-custody are significant. When evaluating a crypto asset custodian’s offering, insurers primarily evaluate the custodian’s approach to compliance and AML, the technical infrastructure and its implementation, and the operational and physical security. This new arrangement with Aon implies a simplification of the underwriting process for both insurers and METACO’s clients, as the insurer’s technical requirements are largely met out-of-the-box. With SILO offered as an integrated on-premise solution as well as through its banking infrastructure providers, the value of a facilitated insurance product may prove decisive for banks evaluating storage solutions and should stimulate the pace at which the banking industry embraces crypto assets.
“It is unique for a technology company, such as ourselves instead of the end client, to work with Aon to bring this to market. Insurance is an essential requirement for banking clients and METACO is excited to be able to facilitate insurance for our clients through the leading broker for crypto insurance solutions.” said Adrien Treccani CEO and Founder of METACO.
Jeff Hanson, a Director within Aon’s UK Financial Services Team said “Aon is pleased to have pioneered the formation of an insurance solution covering theft of crypto assets for the benefit of METACO’s customers while utilising the SILO platform. The METACO team worked in conjunction with Aon to highlight to insurers the robust nature of the SILO system, which resulted in a bespoke insurance product being granted by a panel of London insurers.”