Metaco Offering Crypto Custody Insurance via Giant Broker Aon

Aon, the world’s second-largest insurance broker by revenues, has lined up a panel of insurers to provide cryptocurrency coverage for clients of Metaco, a digital asset custody technology firm. Announced Tuesday, this group of mostly European insurers (none of whom were named) will offer a crime insurance product to institutions using Metaco’s SILO solution for so-called hot and cold (online and offline) wallets. According to Aon, the policies cover losses on everything from natural disasters destroying the private keys kept offline in cold storage to third-party hacks of hot wallets connected to the internet. It did not disclose the dollar amount of coverage available. This is Aon’s latest partnership with a crypto custody player, following tie-ups with San Francisco-based Anchorage and Vo1t, which employs former staffers of the U.K. Ministry of Defence. Insurance is scarce for crypto held at custodians or exchanges, particularly with hot wallets. However, the insurance industry has gradually responded to demand starting with cover for cold storage, which is similar to storing bullion or cash in a vault. That demand is indirectly driven by banks and other financial institutions interested in holding digital assets, said Jacqueline Quintal, financial institutions practice leader at Aon Risk Solutions