Primarily, the most common risks for crypto assets include theft, cyberattacks, loss of private keys, and market volatility. These risks affect both individual investors and institutional players like crypto exchanges. Thus, insurance companies focus on the following areas:

Cyber Insurance: Protecting crypto exchanges or wallet service providers against cyberattacks. For example, insurance policies can be offered to compensate users for losses if an exchange is hacked.

Crypto Wallet Insurance: Products that cover losses for investors in cases of private key loss or wallet access issues.

Regulatory and Compliance Risks: Insurance may also cover legal risks arising from changes in regulations.

Furthermore, crypto insurance can increase adoption at both retail and institutional levels. The availability of insurance policies enhances investor confidence, allowing the crypto market to reach a broader audience. However, the cost of such policies can be high, and insurance companies are still in the process of fully understanding this market.