The insurance sector is quite diversified but is primarily made up of firms that provide risk management contracts. At its most basic, one party (the insurance provider) guarantees payment in the unlikely event that an event occurs (car accident or home destruction). For this to happen, the other party (the insured) pays a premium fee to the insurance provider in exchange for that protection. Insurance cover losses caused by unforeseen circumstances, and crypto insurance is no exception.
What is Crypto Insurance?
Volatile cryptocurrencies frequently make the news the target of multimillion-dollar cyberattacks, causing investors to lose a lot of money. Insurance companies have been trying to get into the crypto space to offer certain types of crypto insurance.
Top Crypto Insurance Projects
Below are top Crypto and DeFi insurance projects on the market:
Bridge Mutual is also known as a discretionary insurance application that permits users to “cover” the risks of one another. The app is revolutionizing insurance and is trying to do away with the necessity for physical locations, and claims experts. All the troubling, litigious, and administrative aspects that have rendered insurance a monotonous and restrictive business. The objective is to assist users in safeguarding their crypto assets while profiting in return for coverage liquidity. Bridge Mutual aims to make it simple and quick for users to protect their digital assets from cyberattacks, rug pulls, and other malicious activities. The app has this feature where users can insure their stablecoins if they get de-pegged from their pair.
CoverCompared is a DeFi insurance platform for the global crypto environment. Their primary objective is to reduce the transactional and operating costs that have typically made insurance out of reach for customers. CoverCompared wants to give people control back by trying to connect them with large corporate insurance companies and establishing a streamlined process infused with tokenized incentive schemes. The platform recently debuted on Polygon, and is one of the rapidly growing blockchain networks available. This represents a critical step towards becoming a multichain platform that connects.
Tidal Finance is a dynamic DeFi insurance platform that offers the industry’s highest Annual Percentage Yields (YAPYs). The platform recently announced a partnership with NAOS Finance to provide a service the industry is yet to see – a real-world asset loan insurance service. They cover the lender’s loss of $100,000 in the event of a loan default, with NAOS’s insurance (which is still in beta) pool covering an additional $100,000. This represents a significant step toward integrating DeFi insurance with real-world asset lines of credit and widening DeFi insurance coverage beyond the traditional smart contract coverage. Tidal establishes several cover streams in which Reserve Providers (RPs) can stake their stablecoins to render reserve capital to any stream. They are rewarded with a stablecoin premium and the $TIDAL token.
Uno Re is the first insurance and reinsurance trading platform that we have seen. The platform is looking to enable the public to invest in and craft ingenious insurance products. With the foundation already established in the Uno Re system, a new wave of insurance technology-based businesses can be launched. What distinguishes Uno Re from the other platforms looking to offer insurance solutions in the crypto space is that it allows users to trade risk-based assets to give access to the risk asset class to increase profits.
BitGo is the market leader in the digital asset finance sector. This platform offers liquidity, safekeeping, and security solutions to investors. BitGo invented the multi-signature wallet and was the first digital asset company to exclusively serve institutional clients. The platform operates in both centralized and decentralized finance. BitGo provides trading, lending, and borrowing services via its prime brokerage services. The platform also serves as the trustee for WBTC, the world’s leading stablecoin for Bitcoin. BitGo handles roughly 20% of all global Bitcoin exchanges and accepts over 500 cryptocurrencies and tokens. BitGo secures and operates for over 700 institutional clients in 50 countries worldwide. These include many regulated entities and the world’s top cryptocurrency exchanges.