{"id":19810,"date":"2019-07-10T18:43:04","date_gmt":"2019-07-10T18:43:04","guid":{"rendered":"http:\/\/ci027cfe79f0012697"},"modified":"2019-07-10T18:43:04","modified_gmt":"2019-07-10T18:43:04","slug":"coinbase-set-to-launch-insurance-subsidiary-with-aon","status":"publish","type":"post","link":"https:\/\/bitcoinmagazine.com\/business\/coinbase-set-to-launch-insurance-subsidiary-with-aon","title":{"rendered":"Coinbase Set to Launch Insurance Subsidiary With Aon"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><figure><img decoding=\"async\" src=\"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/coinbase-to-launch-captive-insurance-subsidiary.jpg\" title=\"\"><\/figure>\n<p>Major cryptocurrency exchange Coinbase is preparing to launch its own insurance company, according to a <a href=\"https:\/\/www.coindesk.com\/coinbase-is-in-talks-to-launch-its-own-insurance-company\" target=\"_blank\" rel=\"noopener\">report<\/a> from <em>CoinDesk<\/em>.&nbsp;<\/p>\n<p>The exchange is reportedly in advanced talks with insurance giant Aon to launch a captive insurance subsidiary, an insurance company solely owned by the firm being insured. Captives are maintained by firms to reduce insurance costs and improve access to reinsurance products.<\/p>\n<p>A partnership such as this could be a solution to the reported shortage of insurance options that exists for cryptocurrency exchanges. Exchanges often have to self-insure by setting money aside for rainy days. Binance\u2019s Secure Asset Fund for Users (SAFU) is a popular example. SAFU is an emergency insurance fund set aside by the exchange in case of potential loss of funds due to security breaches. Huobi and Kraken have emergency funds too.<\/p>\n<p>However, given the lack of proper structure and regulation, the companies can access the funds and use them for other purposes. This could go on to decrease available coverage in the long run.&nbsp;<\/p>\n<p>A captive insurance model like this could bring a stable, regulated and segregated infrastructure to the crypto insurance sub-industry.&nbsp;<\/p>\n<p>\u201cIf a firm is self-insuring, they\u2019ve accepted responsibility for funding 100% of any loss,\u201d Aon\u2019s managing director, Jacqueline Quintal, said, per <em>CoinDesk<\/em>. \u201cCaptives, in comparison, provide a means through which firms can access insurance or reinsurance, while also pre-funding self-insured loss amounts in a more formal way than simply setting aside capital.\u201dEarlier this year, Coinbase shared <a href=\"https:\/\/blog.coinbase.com\/on-insurance-and-cryptocurrency-d6db86ba40bd\" target=\"_blank\" rel=\"noopener\">details<\/a> of its $255 million insurance coverage for its hot wallets, which was purchased from Aon.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Cryptocurrency exchange Coinbase is teaming up with insurance provider Aon to launch a captive insurance subsidiary that would solely serve the exchange.<\/p>\n","protected":false},"author":3435,"featured_media":19811,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[826,190,357,1837,1312,760],"class_list":{"0":"post-19810","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-binance","9":"tag-coinbase","10":"tag-exchanges","11":"tag-huobi","12":"tag-insurance","13":"tag-kraken"},"author_data":{"id":3435,"name":"Jimmy Aki","nicename":"jimmy-aki","avatar_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/12\/jimmy-aki-promo-image-96x96.jpg"},"featured_image_url":"https:\/\/bitcoinmagazine.com\/wp-content\/uploads\/2024\/11\/coinbase-to-launch-captive-insurance-subsidiary.jpg","_links":{"self":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/19810","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/users\/3435"}],"replies":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/comments?post=19810"}],"version-history":[{"count":0,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/posts\/19810\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media\/19811"}],"wp:attachment":[{"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/media?parent=19810"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/categories?post=19810"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitcoinmagazine.com\/wp-json\/wp\/v2\/tags?post=19810"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}