Lloyd’s broker Superscript has launched a dedicated product for distributed ledger technology (DLT), digital asset, and blockchain businesses.
The product, named Daylight, will help digital asset businesses secure insurance and manage risks more easily. Daylight uniquely combines cutting-edge machine-learning technology with the expertise of a team of digital asset insurance brokers, according to Superscript in a statement.
Through Daylight, client businesses will have access to a suite of covers and will be able to manage their risks, benefiting digital asset businesses such as:
- Tokenisation platforms
- Blockchain developers
- Non-fungible-tokens (NFT) platforms
The first Daylight covers to be made available will be technology liability and cyber insurance. These will protect businesses from a range of risks – from ransomware attacks and cyber business interruption, through to unintentional copyright infringement and professional negligence.
The product is available either directly through Superscript or on a wholesale basis.
Superscript will expand Daylight’s product suite later in 2022 to include directors and officers (D&O), custodianship and mining covers.
Underpinning Daylight is a unique combination of cutting-edge technology and expertise, the broker said, noting that underwriting insights powered by machine-learning will support Superscript’s specialist brokers, with deep DLT expertise, to secure businesses the right level of cover.
The launch of Daylight comes as the size of the digital asset market is growing exponentially. According to CB Insights, venture capitalists invested more than $25 billion in blockchain last year, representing a 700% year-on-year increase. Meanwhile, NFT funding soared by 12,800% to $4.8 billion.
“Daylight is setting a new standard for crypto, digital asset and DLT insurance. It will be the gateway between the on-chain crypto community and the largely paper-based insurance market,” commented Ben Davis, team leader, Digital Assets, at Superscript.
“Our expertise will be supported by machine-learning and data-generated underwriting insights. This enables us to build specific insurance products which address the needs of the crypto community, all the while simultaneously addressing the capacity crisis among insurers. This is a huge step towards truly legitimising the DLT community within the insurance industry.”
The launch of Daylight follows Superscript’s selection last year for Lloyd’s Lab’s seventh innovation cohort to help develop insurance products for digital asset businesses.
Superscript said it is the first Lloyd’s of London insurance broker to launch a dedicated product for digital asset businesses.