Markets/Coverages: Lockton Launches Digital Asset Custody Insurance Facility; WTW Launches Risk IQ Portal for Direct Access to Modeling Tools

Lockton Launches Digital Asset Custody Insurance Facility

Lockton has launched a digital asset custody insurance facility, which was developed by Lockton’s Emerging Asset Protection (LEAP) team in collaboration with leading global custody insurers.

The facility is supported by Lloyd’s syndicates, together with highly rated insurance companies. Lockton said this provides its clients with market-leading policy wording and full access to London market capacity, estimated today to be in excess of $850 million for custody coverage.

Key benefits of Lockton’s new facility include:

• Efficiency, including access to full market capacity for custody coverage, without the need for third-party surveys.
• Flexibility, including the ability to secure bespoke programs, incorporating various limits and cost structures, designed to work alongside an insured’s existing and future risk management planning as it onboards custody of digital assets.
• A clear route to entry via a streamlined custody insurance underwriting process, managed by Lockton’s experienced LEAP team members.

Traditionally available through the London market, custody insurance (sometimes called “cold storage” coverage) provides indemnity in relation to private keys stored in secure locations, including those that are part of a multiparty computation (MPC) solution or entirely “offline.”

In addition to providing coverage for the loss of assets, custody insurance plays a sizable role in risk mitigation by adding an extra layer of protection beyond technical and physical security for companies involved in the care, custody and control of digital assets or those providing technology to support custody solutions, said Lockton.

“Custody insurance plays a vital role in protecting consumer assets stored by third-party custodians and is an essential tool in the successful operation of many digital asset companies. Historically, securing that coverage has been difficult, often requiring complicated underwriting processes and the involvement of third-party surveys,” said Neil Daly, head of Lockton UK’s LEAP team.

“Our new custody insurance facility makes it easier for companies operating in the digital asset ecosystem to build robust custody insurance programs, enabling them to better protect valuable digital assets and effectively serve their customers,” he added.

“This facility represents a step forward in insurance coverage for businesses in the digital asset custody space,” said Sarah Downey, head of Lockton’s global LEAP team. “Our LEAP team’s deep partnerships with both insurers and clients and our continued investment in and focus on innovation in this space, further exemplifies Lockton’s long-term commitment to helping the digital asset ecosystem continue to grow.”

About LEAP

Lockton’s Emerging Asset Protection (LEAP) team is a specialized, global group of more than 35 Lockton associates with a deep understanding of companies operating in the blockchain and digital asset space. LEAP team members around the world — including in the US, UK, Bermuda, Asia and Australia — have insurance brokerage and claims expertise spanning all financial and management liability lines of coverage, including directors and officers liability, crime, specie, cyber, employment practices liability and errors and omissions, among others.

***

WTW Launches Risk IQ Portal for Direct Access to Modeling Tools

WTW, a leading global advisory, broking and solutions company, announced the launch of Risk Intelligence Quantified (Risk IQ). The Risk IQ portal provides on-demand and direct access to WTW’s modeling tools, allowing businesses to quantify and analyze ever-changing risks and all major insurable renewals, while also dynamically assessing and evaluating combinations of risk transfer efficiency and risk levels.

Risk IQ is designed for businesses seeking substantial analysis alongside expert risk insight. The flexible and personalized platform provides risk specialists with autonomous access to the breadth of WTW’s leading risk and analytics solutions. This includes:

• Global Peril Diagnostic
• Climate Diagnostic
• Workers’ Compensation Diagnostic
• Property Quantified
• D&O Quantified
• Risk Tolerance Clarified

“From entering new markets and stress testing business scenarios, to assessing M&A activity, Risk IQ empowers risk specialists to understand and navigate their business’s risk portfolio,” commented John Merkovsky, global head of data and analytics, WTW.

“Not only does the platform enhance decision making across the risk-management process, Risk IQ also ultimately puts risk managers in control of their analytic outputs, providing organizations with the ability to run business critical scenarios and prepare for potential losses,” he added.

Topics Liability New Markets Willis Towers Watson