SINGAPORE— May 22, 2023 – Canopius Group, a leading global specialty (re)insurer, today announced it will underwrite its market-leading digital asset custody product from Singapore. With the product available immediately, Canopius is the first carrier on the Lloyd’s Asia platform to provide coverage locally for the custody of digital assets.
Custody refers to the generation and storage of private keys, which enable the transfer of digital assets on a blockchain. Canopius can offer an individual line size of up to $130mn for eligible custody solutions, and the product provides coverage traditionally only available in the Crime and Specie markets separately. The product will be available to financial institutions and covers a broad range of digital assets, including cryptocurrencies, stablecoins and crypto tokens including non-fungible tokens and asset backed tokens.
The launch marks an extension of the product Canopius Syndicate 4444 underwrites in London, catering to a growing demand from the increasing number of businesses exploring digital asset holdings in the Asia Pacific (APAC) region.
Nicholas Edwards, Head of Specie, Canopius, said: “As the leading underwriter globally for digital asset custody insurance, we are delighted to make this product available locally in Singapore. To date, this class of business has been written primarily from London, so we’re pleased to be able to offer the specialist knowledge required to underwrite this class of business regionally, tailored to countries throughout APAC. We are looking forward to developing even closer working relationships with our clients and distribution partners in the region, and being able to establish more touch points with local regulators who are facilitating the growth of this nascent sector.”
Paul Hackett, Head of Short Tail – APAC & MENA, Canopius, said: “As the market matures, increasingly more established financial institutions are exploring the potential of digital assets for their business. Given regulators’ welcoming stance toward digital assets in APAC, notably in Singapore, Hong Kong and Japan, many of those businesses are choosing to expand here. However, while welcoming, their regulatory requirements are firm. Businesses interested in digital assets will need an experienced risk-bearing entity to help them manage the potential exposures of custody, which in turn will raise the bar for the security of the sector overall.”