OneDegree, Hong Kong-based licensed insurer for digital assets, and Dubai Insurance Company have begun issuing digital assets custodial risk insurance to their customers in UAE after gaining a key approval from the Central Bank of United Arab Emirates (UAE), OneDegree said in a statement on Thursday.
OneDegree and Dubai Insurance announced their partnership last year and have supported many digital asset companies with their insurance needs.
Custodial risk insurance completes the product portfolio and allows the partners to offer a one-stop-shop for digital asset companies in the UAE, under the brand “OneInfinity”.
Custodial risk insurance is an essential part of the risk management strategy for digital asset exchanges, custodians and other service providers and is mandated by many regulators worldwide.
VARA, Dubai’s dedicated regulator for digital assets, requires such coverage along with professional indemnity and directors & officers insurance.
With this latest approval, specialized custodial risk insurance can be offered directly in UAE for the first time.
Custodial risk insurance protects companies against the risk of losing access to digital assets including through third party hacks and theft, internal fraud and physical damage to the storage media, according to the statement.
Robin Scott, General Manager of Middle East for OneDegree, said, “UAE has only strengthened its position as a digital asset hub since our market entry last year. There are hundreds of companies setting up across the Emirates and looking to obtain key licences. For this they need strong, tailored insurance policies.”
Abdellatif Abuqurah, CEO of Dubai Insurance, added, “Dubai Insurance is committed to bringing the most innovative insurance products to the UAE. Custodial risk insurance is something brand new to the market but that satisfies an urgent demand as UAE cements its position as a global leader in digital assets.”
OneInfinity by OneDegree offers tech-enabled digital asset insurance and risk management solutions globally.
By offering tailor-made insurance to end-to-end digital asset players (including trading platforms, custodians, asset managers, banks, family offices and technology providers),
OneInfinity is enabled by first-in-class cybersecurity technology offered by Cymetrics, a sister company of OneDegree.
OneInfinity solutions include digital asset custodial risk insurance (crime, and specie) and corporate liability coverages (Professional Indemnity, Directors & Officers, Investment Management and Cyber).
Dubai Insurance has a rich and extensive history that dates back several decades.
Incorporated by His Highness Sheikh Rashid Al Maktoum as the first local company in the UAE in 1970, it is the first national insurance company to be founded in the UAE.
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