Berkley Insurance Australia (BIA) has taken immediate action to boost its offerings this year by teaming up with Frontier Global Underwriting (Frontier).
The partnership will see BIA and Frontier enter the blockchain industry by providing professional liability, general liability, and directors' & officers' liability insurance for blockchain companies.
Currently, insurance for blockchain companies is limited, if offered at all, due to minimal understanding of how this emerging technology operates. Aside from cryptocurrencies, blockchain is changing how regular businesses control their data to enable users to transact transparently with trackable, secure data that is less susceptible to hacking.
“We consider that blockchain has the potential to offer true IT security, and we want to assist the industry by providing well-developed broad insurance coverage so the industry can continue to expand,” said BIA national underwriting manager Matthew McPhee.
The partnership puts BIA and Frontier among the first insurance providers and underwriting agencies to offer a tailored insurance solution for blockchain. Industries already taking advantage of this emerging technology are supply chain management, insurance, and automotive by way of car electronic wallet.
“Blockchain technology can provide all of the factors that most people seek but don't receive from current technologies,” McPhee said. “Those factors include security, transparency, efficiency, and immutability. Blockchain can provide IT security with each block on the network carrying a unique hash that prevents data from being maliciously changed by hackers. We see blockchain as the future of secure, dependable IT systems, and we want to support the industry.”
BIA and Frontier are looking to support similar business models that do not offer cryptocurrencies or related activities.
“BIA's target market is any blockchain technology company – ideally any entity offering blockchain technology, excluding cryptocurrencies,” said McPhee. “We will offer insurance for IT, including professional indemnity and public liability, plus directors' & officers' liability for established companies and start-ups.”