RACB Will Offer Insurance Services For Russian Blockchain Companies
RACB Vice President Valerii Petrov outlines the bright prospects for the blockchain space in Russia. Working with AIG and Arsenal, his venture is now ready to offer a wide range of insurance plans to blockchain companies to help protect them in the case of DDoS attacks, information leaks, and hacks.
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RACB to Bring Insurance to the IT Sphere
On November 19th, Petrov declared to the Russian press that the offer is designed for employees and their family members. In the RACB, the Russian Association of Cryptocurrencies and Blockchain, Petrov holds the position of special working group head. That division is dedicated to digital insurance and cyber risk. According to the expert, the yearly volume of losses caused by hackers has reached $1 billion USD and is growing:
“This issue cannot be solved using only technical methods. But security systems can be improved by means of the financial tools.”
The Demand for Crypto Insurance Coincides With Regulatory Clarity
Russia was in the grip of crypto controversy before the first signs of regulation did emerge in late 2018. Now, RACB members and plenty of other ventures have declared a will to guard their profits via insurance. Per Petrov:
“We handle risks of corporate data leaks, personal data leaks, business interruptions, cyber extortions and DdoS-attacks. We also can assist in personal injuries, property damage, product manufacturer responsibility issues in cases when such obstacles occur as a result of hacking or other third party interference. Not only the companies and their clients can use the insurance, but also the workers and their relatives.”
According to Petrov, the RACB is already working with such companies as American International Group and Arsenal, who offer insurance products. Other companies have been invited to join the association. Interestingly, the RACB itself isn’t going to sell the insurance plans, acting only as “a center of competence”. It will help Russian and foreign insurance ventures to cooperate with local blockchain startups using the same language. Petrov says:
“Our attitude is what will help business minimize costs and attract large-scale insurance firms who can cover risks associated with both small sums and millions of dollars.”
New Market May Be Ready to Operate in Russia
The fact that AIG has shown an interest in Russia is significant for its digital economy. The insurance giant has been operating since 1919 in more than 80 countries around the world. According to the Fortune 500 list, AIG is the 60th largest public company in the world.
In this light, it is interesting to note that the Carbon Black report on cryptocurrency exchanges shows they are the most popular target for web attacks, with $1.1 billion in losses during only the first five months of 2018.
What do you think about the prospects for a Russian crypto insurance market?
Images by Jeff Fawkes