Cryptocurrency exchange Coinbase is in talks to set up its own regulated Insurance company with the help of Insurance broker giant Aon At the start of this year, Aon began establishing captive companies in the Cayman Islands working with a handful of Cryptocurrency firms. Coinbase in talks with Aon is planning to establish ”Captive” Insurance company. Captive Insurance subsidiaries wholly owned by the firm being Insured, is a time – honoured way for corporations to reduce costs and improve access to reinsurance markets.
Coinbase and Aon see this structure as potentially part of the answer to the shortage of Insurance available to crypto exchanges. Coinbase has obtained more coverage than most of its competitors, who often time just self Insure by setting aside abunch of Coins to cover losses in the event of a hack or disappearance of Customer funds.