South Korean Crypto Exchanges Who Suffer Hacks See Hanwha Insurance Offer Solution
Key Korean Insurer to Provide Crypto Exchange Assurance for Reparations Caused by Hackers
One of the main insurance companies in South Korea will commence providing crypto exchange insurance with the aim of compensating for damages arising from hacking. At the moment, very few crypto exchanges in South Korea are insured, with hacking damages not under any insurance covers.
Hanwha Insurance, a key insurance firm based in South Korea, is introducing an innovative type of cyber assurance in the course of September. The insurance cover is aimed at offering compensation for damages caused by hacking of local crypto exchanges, according to local media reports.
According to the Asia Times, cyber insurance, which virtual asset exchanges have become part of in the recent past, is a recompense for the outflow of private data. Additionally, the innovative product also compensates for damages arising from hacking.
Hanwha Insurance has revealed that it will commence the plans to being negotiations within individual exchanges for insurance as from October. The firm also asserted that in case a company wants to be part of the firm, the company will need some coordination. This is due to the fact that insurance and reinsurance firms have to meet so as to access insurance.
According to the publication from the news agency, exchanges may be hesitant to take insurance in case enough compensation is not offered, or if the premiums needed are exorbitant.
A Rise in Demand for Hacking Assurance
The demand for assurance cover for damages caused by hacking has been on the rise in South Korea, following the hacking of Bithumb and Conrail mid this year. In as much as Bithumb already has two assurance policies, unfortunately, both of the policies do not cover the damages caused by hacking. The companies are Hyundai Marine and Fire Insurance Company as well as Heungkuk Fire and Marine Insurance Company.
Few exchanges are presently covered
Mid this year, Business Korea indicated that the Korean Blockchain Association had commenced discussions with Hanwha General Insurance Company as well as Hyundai Marine and Fire Insurance Company with the aim of offering insurance coverage for crypto exchanges of any size.
The association has in the recent past continued to hold negotiations with insurers on behalf of its members. This is mainly due to the fact that insurance firms are not willing to accept virtual asset as their policyholders. This is due to the credibility and safety concerns that many people have towards cryptos.
The association is made up of twenty three members which are crypto exchanges. This include four of the main ones which comprise of Coinone, Upbit, Korbit and Bithumb. Even though they are currently having insurance covers, the coverage amounts are not significant.