Liberty Specialty Markets (LSM), part of the Liberty Mutual Insurance Group, has unveiled a new insurance solution tailored to financial institutions operating within the cryptocurrency ecosystem, responding to growing demand for specialised cover in the rapidly evolving digital asset sector.
The newly launched product is designed to support crypto-asset service providers across Europe, particularly those falling under the European Union’s Markets in Crypto-Assets (MiCA) regulation. MiCA aims to establish a harmonised regulatory framework for digital assets within the EU, enhancing transparency and investor protection.
LSM’s coverage addresses a range of sector-specific exposures, including professional liability, management errors, fraud, and theft, with capacity limits of up to €3 million. The product is available to a broad spectrum of financial institutions, from traditional banks and asset managers to blockchain-native startups.
The launch reflects increasing demand for risk management tools amid rising regulatory and operational complexity in the digital asset space. As crypto-related technologies and compliance requirements continue to evolve, financial institutions are seeking robust insurance solutions to help navigate these challenges.
Although the UK is not subject to MiCA following Brexit, the country has introduced its own regulatory measures for the cryptocurrency sector. The Financial Conduct Authority (FCA) has tightened oversight of digital asset firms, including the implementation of new marketing rules in 2023 that mandate a cooling-off period for retail investors. The UK government has also proposed extending financial services regulations to encompass certain crypto-related activities.
Developed in close collaboration with LSM’s cyber and technology underwriting teams, the product aims to close key coverage gaps in crypto insurance and bolster confidence among firms looking to operate more securely in this space. It complements Liberty’s wider portfolio of insurance solutions for financial institutions in Europe, which includes professional indemnity, directors’ and officers’ liability, and bankers’ blanket bonds.
