As the cryptocurrency market continues its rapid growth, reaching a staggering valuation of more than $1 trillion, the potential risks associated with this digital asset class also escalate. Recognising the pressing need for comprehensive risk mitigation solutions, South African-based Revolute Underwriting Agency (Pty) Ltd in partnership with Digimune, a UK-based Cybercrime specialist company, has launched a cutting-edge crypto insurance product designed to protect individual investors and exchanges.

Revolute has a strong relationship with local reinsurers, as well as with global reinsurance brokers who place business internationally, and also with Lloyd’s of London syndicates.

“According to our research, around 68% of the losses suffered by crypto investors are because of scams such as phishing, and incidents where fraudsters convince individuals to transfer their crypto to another wallet. Surprisingly, high-profile exchange hacks account for a small proportion of losses,” says Simon Campbell-Young, VP Global Sales and Co-founder of Digimune. There is an inherent risk in blockchain technology, mainly because of dubious players and criminal networks preying on and exploiting individuals’ and organisations’ vulnerabilities, weaknesses, ignorance, and negligence.

“CryptoShield addresses the specific risks and needs of crypto-investors and fill a significant gap in the insurance market,” adds Campbell-Young. CryptoShield provides a comprehensive approach to protect customers in multiple ways. “We use proactive measures to lower the chances of individuals being defrauded and closely monitor the dark web for any activities related to our customers’ digital identities, ensuring their online security. In the event of losses suffered, our insurance policy offers coverage to safeguard our customers’ financial interests.”

CryptoShield provides comprehensive coverage for individuals against the loss of funds resulting from hacks or illicit activities specifically targeting approved cryptocurrency exchanges or wallets. The policy extends coverage to the top 20 major crypto assets, including Bitcoin, Bitcoin Cash, Ethereum, Ripple, Litecoin, Solana, and Polygon, with a maximum coverage limit of US$100,000. For cold or hard wallets, the maximum limit of coverage can be set as high as US$500,000. Premiums are very affordable and include Digimune’s risk mitigation tools. As an entry-level solution, the insured will pay approximately $25 per month for $5,000 in coverage.

“We will cover most events, including cold storage wallet theft or damage. Social Engineering scams such as phishing, vishing, telephonic and e-mails scams that cause loss of crypto funds—outside the wholesale hack of an exchange—will also be covered,” says Campbell-Young. The cover also extends to losses suffered in a ransomware attack. To further enhance the risk mitigation aspect, all CryptoShield customers will receive complimentary Digimune Digital Risk Monitoring Services, and Norton multi-platform and multi-device protection, which the insured must utilise to keep cover in place. This dual security approach defends against device layer attacks while monitoring the internet for existential web-based threats.

Norton’s 360 software blocks phishing, scams, and fake emails on the user’s device. It also includes cloud storage and a free VPN. “We provide internet and dark web monitoring services that keep track of your digital assets 24/7. This includes monitoring your name, bank card numbers, bank account numbers, identity and passport numbers, and crypto wallet ID or address. Any breach or mention on the dark web will trigger an alert, so the customer can take steps to protect themselves before a loss occurs,” says Campbell-Young.

“We are breaking new ground with this offering. It is an extremely well calculated, well thought out insurance product that meets a growing need in the market,” he adds. “We expect strong uptake, with major insurers and crypto exchanges already in talks with us to offer CryptoShield as a value add to their customers.

CryptoShield is now available locally, with rollout globally in partnership with insurers and exchanges in their respective regions already in progress. Crypto investors looking to cover their investments can purchase policies individually, or ask for their exchanges to add it to their service offering. Exchanges seeking to incorporate it as a value add can visit Digimune’s website.