Insurers increase scrutiny on crypto firms after $6.3B Binance hack - report
Insurers are intensifying scrutiny of crypto companies following last week's massive $6.3B heist at Binance, according to a media report on Friday.Underwriters aren't expected to broadly pull back from the sector or reduce availability of coverage, Reuters reported, citing interviews with industry executives and others.The largest crypto theft on record also highlights the limits of insurance available for such incidents. No crypto policies available would cover a loss of the size that Binance incurred. Also, many policies have exclusions for state-backed cyberattacks. U.S. authorities and blockchain analysis firms have concluded that North Korea was behind the Binance hack.Jacqueline Quintal, Marsh's financial institutions and digital asset industry leader, told Reuters she doesn't foresee material change in policy pricing, coverage, or capacity. Rather, insurers will ask clients more questions, including whether they could be prone to similar attacks, she said.Furthermore, insurers may require that clients address any vulnerabilities that may lead to a similar attack. According to a report from Binance, the hackers compromised three computers at the company through a bogus job interview and software embedded in an advertisement."If it becomes apparent from the investigation into this hack that there was a very specific weakness or flaw in Binance's security, then other insurers can certainly expect to see a requirement for that weakness or flaw to be resolved," Peter Hardy, an insurance lawyer at Reed Smith told Reuters.Relevant tickers for crypto: Bitwise Crypto Industry Innovators ETF , First Trust SkyBridge Crypto Industry and Digital Economy ETF .Tickers for insurers: AIG , Chubb , Marsh , The Hartford Insurance , Travelers , AXA .Content provided by Seeking Alpha is intended for information purposes only, and that Seeking Alpha does not offer any personalist investment advice and is not a licensed securities dealer, broker, US investment adviser or investment bank.