Marsh creates unique insurance solution for crypto-asset service providers


New solution to comply with forthcoming EU regulation aimed at supporting market stability

Marsh has announced (8 May 2024) the launch of MiCAssure, a new and proprietary insurance solution for crypto-asset service providers such as custodians, exchanges, and administrators operating within the European Union (EU), which are required to comply with the forthcoming Markets in Crypto-Assets Regulation (MiCA). 

Set to be introduced on 30 December 2024, MiCA creates a comprehensive regulatory framework for the crypto-assets market within the EU and seeks to address the challenges associated with legal certainty, consumer protection, and regulatory fragmentation in the market for crypto-assets and services. It requires that regulated firms authorised under MiCA have in place prudential safeguards, either using their own funds or maintaining an insurance policy, to cover specific risks.

Developed by Marsh Specialty in conjunction with both Lloyd’s and London market insurers, MiCAssure provides cover for third party claims arising from misrepresentations or misleading statements, obligations of confidentiality, business interruption, legal and regulatory obligation, and gross negligence in the safeguarding of clients’ crypto-assets and funds. MiCAssure provides protection for the risks detailed in MiCA’s prudential requirements and aids firms in the elimination or reduction of the need to set aside capital to meet their exposures in accordance with the regulation.

Rupert Poland, UK Digital Asset Leader, Marsh Specialty, said: “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.”