CII New Generation group aims to boost understanding of risk in cryptocurrency

Before the event, held at the Old Library at Lloyd’s, the group surveyed attendees, 96% of whom said they did not feel confident in their understanding of cryptocurrency as it relates to insurance. Following the discussion, 75% of surveyed attendees said they would now be able to hold a basic conversation on the topic, and 88% reported that their perception of the insurability of digital assets had changed positively.

The panel, entitled Crypto Confidence: How can the London Market demystify digital asset insurance?, featured Ben Davis of Native, Will Gow of Crawford & Company, Peter Wedge of Gallagher Re, and Richard Daws of Redefind. Each panellist shared their insights into how insurance firms can approach cryptocurrency with the same risk-based mindset applied to any emerging asset. According to Ben Davis, “The best time to have started was eight years ago; the second best is now.”

It was discussed that cryptocurrency should be viewed as another asset class rather than an unmanageable risk, with the presentation and panel tracing the history and evolution of digital assets, highlighting the significant opportunity in this space driven by current levels of underinsurance.

The group also produced a Bytesize Guide to cryptocurrency, providing an introduction to the various types of digital assets that exist, the insurance solutions currently available, key underwriting challenges, claims complexities, and the evolving regulatory landscape. The guide outlines both challenges and opportunities for the London Market to consider and dispels myths around the realities of digital asset usage.

Matthew Hill, CII Chief Exec, said: "Initiatives like this demonstrate the power of our profession’s next generation to lead conversations on emerging risks and opportunities. The group has done an excellent job of bringing together expertise from across the sector, to develop confidence and understanding around cryptocurrency.”

Established in 2010, the CII New Generation Programme provides an opportunity for up-and-coming professionals to identify and complete a project or initiative that could make a positive change within the insurance profession. As well as collaborating with group members from across the UK, the year-long programme offers a range of learning and networking opportunities, including interactive sessions with key personnel from regulatory bodies, talks from Members of Parliament and lobbying organisations in the insurance sector, and training on subjects such as leadership, and working with the media.

The panel discussion recording and accompanying guide can be found here.