Insurers Race to Cover Crypto Kidnap and Ransom Risks
Insurers are developing new kidnap and ransom (K&R) policies for cryptocurrency holders due to a rise in violent attacks, including kidnappings and torture incidents. At least three firms are preparing tailored K&R coverage, with expectations for launches by fall. Concerns have escalated following high-profile cases, such as the torture of an Italian tourist in Manhattan and kidnappings of crypto executives in France. The decentralized nature of cryptocurrencies makes holders attractive targets for criminals. Traditional K&R insurance, typically used for corporate executives, is now being sought by crypto investors. Pricing for these policies is complex, influenced by clients' security measures. Recent incidents include a robbery attempt in South Korea and an attempted kidnapping of a French crypto executive's family. As a result, demand for personal security services among crypto industry figures is increasing.
