The launch of MiCAssure is part of the EU’s initiative to create a comprehensive regulatory framework for the crypto asset market. MiCA, which is expected to come into force on December 30, 2024, aims to address issues such as legal uncertainty, consumer protection and market fragmentation. This regulation aims to create a stable and reliable environment for crypto asset service providers to operate across the EU.

Marsh Specialty developed MiCAssure in collaboration with Lloyd’s and London market insurers. This insurance solution helps crypto asset service providers meet MiCA compliance obligations by offering a range of coverage. Coverages offered by MiCAssure include:

• Guarantee Against Misrepresentations: Protection against third party claims in case of false information or misleading statements are made to customers.
• Confidentiality Breach Coverage: Compensation in case of unauthorized access or disclosure of customer information or confidential data.
• Business Interruption Coverage: Coverage against financial losses resulting from interruption of crypto asset services due to unexpected events.
• Legal Liability Guarantee: Guarantee against legal expenses and compensation arising in connection with the execution of crypto asset services.
• Theft and Loss Coverage: Coverage against loss or theft of customer crypto assets or funds. This coverage is especially valid in cases of gross negligence.

Marsh Specialty UK digital asset lead Rupert Poland highlights the importance of MiCAssure: “Regulatory developments such as MiCA increase the reliability of the digital asset ecosystem by offering security and stability to retail users and institutions entering the digital asset space. They also provide robust guidance and frameworks for crypto asset service providers.” “MiCAssure not only provides operational assurance to our customers, but also has the potential to facilitate capital liberalization and growth. It is a vital insurance and risk management solution for crypto asset service providers operating in the EU.”

MiCAssure is launching on the heels of Marsh’s insurance solution for digital asset custodians. Launched in March, this program provides up to $825 million in insurance capacity to organizations that store digital assets in cold storage. These developments demonstrate Marsh’s commitment to providing comprehensive risk management solutions to its clients while keeping pace with the growth of the crypto asset market.

The launch of MiCAssure is considered an important step in the regulation of crypto asset services in the EU. This solution can contribute to a healthier development of the EU cryptoasset market by helping cryptoasset service providers ensure MiCA compliance while also increasing investor confidence.