A major insurance in Korea introduces a new insurance product for crypto exchanges that cover hacking damages.
Hanwha Insurance, a major insurance company in Korea announced the launching of their new insurance product for cryptocurrency exchanges, which will cover hacking damages.
As reported by Bitcoin.com, many exchanges in the country have actually been insured, for example, Bithumb for $5.3 million, Upbit for $4.5 million, Coinone and Korbit for $2.7 million each, but unfortunately, none of them includes coverage for damages caused by hacking.
As a remark, Bithumb's two insurance policies from Hyundai Marine & Fire Insurance Co. and Heungkuk Fire & Marine Insurance Co. covers violation of information maintenance, data loss and theft, cyber threats, and compensation for investor personal information leakage, but not hacking damages, although it's actually one of the most crucial protections with regards to the industry's high exposure to cybercrime.
To find the solutions, The Korean Blockchain Association had a discussion with several insurance companies on how to provide coverage for hacking damages for crypto exchanges last June. Although the discussion results were not disclosed clearly, this new insurance product offered by Hanwha Insurance is very likely the result of it.
Several exchanges in the country have been reported to have suffered from major hacks that cost millions of the investors' funds, which is a sad reality considering the reputation of Korea as one of the crypto capitals in Asia, together with Japan.