Crypto Insurance by the Numbers: $13.75 Billion Market, Under 1% of Assets Covered

The scale of the digital-asset market exceeded $4 trillion in 2025, and the insurance industry has barely scratched it. Understanding why tells you a lot about crypto’s remaining risks.

• The crypto insurance market is estimated at $9.49 billion in 2025 and $13.75 billion in 2026; under 1 percent of crypto assets carry coverage ^[1].
• Lloyd’s of London syndicates are the primary underwriters; Marsh assembled the largest facility at $825 million; Evertas offers limits up to $420 million per policy ^[1].
• Premiums run roughly 0.5 to 5 percent a year, versus 0.1 to 0.5 percent for fine art or precious metals ^[1].
• Standard policies exclude market volatility, regulatory action, smart contract bugs, user error and, generally, self-custody losses ^[1].

The size of the gap

Spark’s research, citing Grand View Research, puts the global crypto insurance market at $9.49 billion in 2025 and $13.75 billion in 2026. Even so, fewer than 1 percent of crypto assets are insured, leaving over $1 trillion uncovered, and roughly 89 percent of holders have no coverage ^[1].

Who writes the policies

Lloyd’s of London syndicates, including Arch, Atrium, Beazley and Canopius, are the main underwriting venue. Marsh assembled the largest facility, with $825 million of capacity, and Evertas, a crypto-native managing general agent, offers limits of up to $420 million per policy ^[1]. Even the biggest limits are small against custody books in the billions: a $500 million policy on a $5 billion book covers about 10 percent of headline exposure.

What it costs

Crypto custody insurance premiums typically run from 0.5 to 5 percent of coverage a year, well above the 0.1 to 0.5 percent charged on fine art or precious metals. The difference reflects the elevated risk and limited underwriting capacity ^[1].

What is excluded

• Market volatility and regulatory actions.
• Smart contract bugs and user error.
• Blockchain-level failures.
• Losses in self-custody, which is why most individual investors cannot buy meaningful coverage ^[1].

Who qualifies for cover, and for whom it is written

Underwriters set conditions before they write a policy. According to the Spark analysis they look for cold-storage ratios of 95 percent or more with air-gapped signing, multi-signature or multi-party-computation controls for larger withdrawals, SOC 2 Type II certification, regular penetration testing with documented fixes, formal key ceremonies with multiple witnesses and key material spread across jurisdictions, plus background checks, access logging and separation of duties among staff ^[1]. Evaluating a custodian’s security takes deep technical expertise that traditional insurers often lack ^[1].

Demand is rising for three reasons the article names: regulation, with the GENIUS Act and Europe’s MiCA framework requiring custody insurance as part of compliance; institutional allocators who increasingly require insurance as a precondition after Bitcoin ETF adoption; and SEC accounting rules that push public companies holding crypto to insure against losses ^[1]. For ordinary holders the picture is less comforting: most retail holders cannot reach institutional policies, Coincover offers $100,000 to retail customers, and assets in personal wallets have traditionally been uninsurable, though AnchorWatch’s miniscript vault is an emerging exception ^[1]. The article expects premiums to compress as underwriting data matures and capacity grows ^[1].

What it means for investors

Insurance in crypto protects institutions from theft and fraud at the custodian, not anyone from price drops. A retail holder on an exchange should read the exchange’s coverage terms, which usually do not insure individual accounts. The gap between the size of the market and the size of the coverage is a measure of how new, and how risky, the asset class still is. This is analysis, not investment advice.

Questions readers ask

Is cryptocurrency insured?

Mostly not: fewer than 1 percent of crypto assets carry insurance, and policies cover custodian theft and fraud, not price declines ^[1].

How much does crypto custody insurance cost?

Typically 0.5 to 5 percent of coverage per year ^[1].