Marsh launches tailored insurance solution for EU crypto-asset providers

Marsh, the insurance broking division of Marsh McLennan, has launched MiCAssure, a tailored insurance solution for crypto-asset service providers within the European Union (EU).

This innovative insurance offering is designed for EU-based crypto-asset service providers such as custodians, exchanges, and administrators, who must comply with the forthcoming Markets in Crypto-Assets Regulation (MiCA).

This regulation aims to promote market stability and addresses issues like legal certainty, consumer protection, and regulatory fragmentation in the crypto-assets market.

Scheduled to take effect on December 30, 2024, MiCA establishes a comprehensive regulatory framework for the EU’s crypto-assets market. It mandates that regulated firms authorised under MiCA maintain prudential safeguards, either through their own funds or by having an insurance policy, to cover specific risks.

Developed by Marsh Specialty in collaboration with Lloyd’s and London market insurers, MiCAssure offers coverage for third-party claims arising from misrepresentations, obligations of confidentiality, business interruption, legal and regulatory obligations, and gross negligence in safeguarding clients’ crypto-assets and funds. It addresses the risks outlined in MiCA’s prudential requirements and helps firms eliminate or reduce the need for capital reserves to meet regulatory exposures.

Rupert Poland, UK Digital Asset Leader at Marsh Specialty, explains, “Regulatory advancements such as MiCA enhance the credibility of the digital asset ecosystem by offering security and stability to retail users and institutions venturing into the digital assets space, while providing robust guidance and frameworks for crypto asset service providers.

“MiCAssure not only offers clients an operational safeguard but also has the potential to free up capital and facilitate growth, making it a vital insurance and risk management solution for crypto-asset service providers operating in the EU,” Poland concludes.

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