A Hong Kong insurance firm has opened up its coverage to NFTs – becoming the first insurer in Asia to offer such a service – as the city wrestles with its pandemic-induced “isolated status”.
OneDegree, one of four virtual insurers in the global financial hub, has entered a three-year partnership with German reinsurer Munich Re to expand its crypto division.
The insurer debuted its cryptocurrency division in November last year, after providing the Hong Kong Digital Asset Exchange some $12.7m (£9.8m) in coverage.
“With more attention being paid to the metaverse and digital assets, a growing number of coverage providers are considering expanding their [underwriting] capacity for these sectors,” co-founder and CEO Alvin Kwock Yin-lun, told the South China Morning Post.
It comes at a time when Hong Kong businesses are inclined to remind the world of their desirability, after strict ‘Zero-Covid’ restrictions quashed growth and accessibility.
Lloyds of London just two months ago gave its golden seal of approval to Evertas, the world’s first crypto-specialised insurance firm.
There is increasing risk for players in the crypto sector, as regulation races to keep up with its popularity.
Earlier this month, the owner of a collection of highly prized Bored Ape and Mutant Ape NFTs lost $576,000 (£440,000) worth of assets to a scam, City A.M. reported, after a hacker duped the trader into an NFT trade-off for worthless images edited to include fake verification ticks.
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