The largest South Korean insurance company Hanwha Insurance will start offering insurance for crypto-exchanges, which compensates for damage from hacking. Currently, insurance has only a few cryptocurrency areas in the country, and none of these policies provides insurance coverage for hacking.
South Korean media reported that this month Hanwha Insurance will present a new type of product for cyber insurance, the purpose of which is to provide compensation in connection with the hacking of local crypto-exchanges. The Asia Times notes:
"Cyber insurance, with which crypto-exchanges have faced in the past, is a compensation for the leakage of personal information, but the new product also compensates for damage caused by burglary."
It is alleged that Hanwha Insurance "plans to start negotiations with individual stock exchanges on the issue of insurance from next month". However, the company added that "if the exchange wants to use the service, then it will require participation, as insurers and reinsurers need to meet certain conditions in order to provide insurance."
The publication notes that "exchanges are unlikely to be insured unless sufficient compensation is provided or if the cost of the service is too high."
The demand for insurance coverage of cracking crypto-exchanges in South Korea grew after attacks on Bithumb and Coinrail this summer. While Bithumb already has two insurance policies - one from Hyundai Marine & Fire Insurance Co., and the other from Heungkuk Fire & Marine Insurance Co. - CBC News notes that they do not cover the damage from hacking the site by hackers.
In June, Business Korea reported that the Korean Blockchain Association is in talks with Hyundai Marine & Fire Insurance Co, as well as Hanwha General Insurance Co. to ensure that insurance coverage for crypto-exchanges of any size is provided. The publication noted:
"The Association has been negotiating with insurers since April this year on behalf of its members. Since insurance companies are reluctant to agree to provide services to crypto-exchanges because of problems with their security."
The association has 23 crypto-exchanges, including the four largest sites of the country, Upbit, Bithumb, Coinone and Korbit, which already have insurance, but insurance payments for it are small. According to the publication, Bithumb is insured for $ 5.3 million, Upbit for $ 4.5 million, and two other exchanges for $ 2.7 million each.