Crypto Insurance Market Forecasts to 2034 – Global Analysis By Technology Type (Custody Insurance, Exchange Insurance, DeFi (Decentralized Finance) Protocol Insurance, Smart Contract Failure Insurance, and Stablecoin & Token Insurance), Coverage Type, End

According to Stratistics MRC, the Global Crypto Insurance Market is accounted for $2.16 billion in 2026 and is expected to reach $16.71 billion by 2034 growing at a CAGR of 29.1% during the forecast period. The crypto insurance market comprises specialized insurance products and services designed to protect digital asset holders, exchanges, custodians, and blockchain-based enterprises from financial losses due to theft, hacking, operational failures, fraud, and other technology-related risks. It supports risk transfer solutions for custody, exchange operations, smart contract vulnerabilities, and professional liabilities. Growth is driven by the rapid institutional adoption of cryptocurrencies, increasing regulatory clarity, rising frequency and sophistication of cyber-attacks, expansion of decentralized finance (DeFi), and growing demand for asset protection in the evolving digital economy.

According to the International Association of Insurance Supervisors, insured digital-asset custody limits have risen to over USD 6–8 billion globally as regulated custodians expand coverage.

Market Dynamics:

Driver:

Institutional adoption of digital assets and regulatory advancements

As institutional investors, hedge funds, and corporations increasingly allocate capital to cryptocurrencies and tokenized assets, the demand for robust insurance coverage has surged. Regulatory frameworks in key jurisdictions are evolving to recognize and oversee digital asset activities, mandating stricter custody and risk management standards. This institutional entry not only amplifies the need for crime, theft, and professional liability insurance but also encourages traditional insurers and specialized underwriters to develop tailored crypto risk products, thereby expanding market depth and legitimacy.

Restraint:

Limited underwriting capacity and high risk volatility

The nascent and highly volatile nature of the crypto asset class poses significant challenges for insurers in accurately pricing and underwriting risks. The lack of extensive historical loss data, coupled with the rapidly evolving threat landscape (including smart contract exploits and decentralized protocol failures), results in constrained industry capacity and high premium costs. Many traditional insurers remain cautious, leading to coverage limitations, high deductibles, and stringent security requirements that can exclude smaller or newer market participants.

Opportunity:

Expansion into DeFi, smart contract coverage, and emerging economies

The explosive growth of decentralized finance (DeFi) protocols, non-custodial wallets, and cross-chain ecosystems has created new, unaddressed risk pools. Innovative insurance solutions covering smart contract failure, oracle manipulation, and governance attacks represent a high-growth frontier. Simultaneously, rising cryptocurrency adoption in emerging economies across Asia Pacific, Latin America, and Africa presents opportunities for localized insurance products tailored to regional regulatory and risk profiles, supported by insurtech and blockchain-native providers.

Threat:

Catastrophic systemic risks and regulatory fragmentation

The interconnected nature of the crypto ecosystem means that a major failure in a large exchange, stablecoin, or widely used protocol could trigger cascading losses, potentially overwhelming available insurance capital. Additionally, inconsistent and fragmented regulatory approaches across different countries create compliance complexity and market uncertainty, hindering the development of standardized global insurance products and possibly leading to coverage gaps or jurisdictional disputes.

COVID-19 Impact:

The COVID-19 pandemic accelerated digital transformation across financial services, indirectly boosting cryptocurrency adoption as both a perceived hedge and a digital asset class. This increased activity highlighted the critical need for security and risk mitigation, driving early inquiries into crypto insurance. However, pandemic-related economic uncertainty initially made traditional insurers more risk-averse. The period ultimately served as a catalyst, speeding up the dialogue between crypto enterprises and the insurance industry and fostering the development of more structured insurance offerings.

The custody insurance segment is expected to be the largest during the forecast period

The custody insurance segment is expected to account for the largest market share, as securing held assets (both hot and cold storage) remains the primary concern for institutional participants. With the rise of regulated custodians and the substantial value of assets under management, demand for comprehensive crime and specie insurance policies covering theft, private key loss, and physical damage to storage infrastructure is highest in this segment. Insurers are increasingly offering differentiated premiums based on security certifications and custody practices.

The DeFi (Decentralized Finance) protocol insurance segment is expected to have the highest CAGR during the forecast period

Over the forecast period, the DeFi protocol insurance segment is predicted to witness the highest growth rate. The proliferation of decentralized applications, automated market makers, and lending platforms has exposed users to novel risks like flash loan attacks, governance takeovers, and liquidity pool exploits. Native crypto insurers and decentralized mutuals are pioneering on-chain coverage products for these scenarios, attracting liquidity from the DeFi community itself and enabling real-time, parametric claim settlements, which align with the sector's automated ethos.

Region with largest share:

During the forecast period, the North America region is expected to hold the largest market share, owing to its concentration of major cryptocurrency exchanges, institutional investors, and pioneering insurance carriers. The relatively advanced regulatory environment in the United States and Canada, particularly around licensed custodians and money transmitter laws, has fostered early and structured insurance procurement. The presence of leading traditional insurers and insurtech firms experimenting with crypto lines further consolidates North America's position as the dominant revenue-generating region.

Region with highest CAGR:

Over the forecast period, the Asia Pacific region is anticipated to exhibit the highest CAGR. This growth is fueled by rapid cryptocurrency adoption in countries like Japan, South Korea, Singapore, and Australia, alongside burgeoning retail and institutional markets in India and Southeast Asia. Increasing government efforts to establish digital asset regulations, coupled with a vibrant fintech and insurtech ecosystem, are driving demand for tailored crypto insurance solutions. The region's significant volume of crypto transactions and expanding base of exchange and custody service providers create a substantial addressable market.

Key players in the market

Some of the key players in the Crypto Insurance Market include Lloyd’s of London, Chubb Limited, Aon plc, Marsh & McLennan Companies, Inc., Allianz SE, AXA XL, Berkshire Hathaway Specialty Insurance, Munich Re Group, Zurich Insurance Group, Coinbase, BitGo, Inc., Nexus Mutual, Etherisc, OneDegree, and Plug and Play Insurtech Partners.

Key Developments:

In February 2026, Marsh McLennan expanded its digital asset insurance facility to provide up to $500 million in coverage per occurrence for cold-storage and MPC (Multi-Party Computation) wallet providers.

In January 2026, Tether partnered with Anchorage Digital Bank to launch USA₮, the first dollar-backed stablecoin to include built-in insurance protections under the new U.S. federal regulatory framework.

In December 2025, Coincover introduced its ""Protected Movement"" insurance feature, which provides real-time transaction monitoring and asset recovery guarantees for institutional digital asset custodians.

Technology Types Covered:
• Custody Insurance (Hot Wallet, Cold Storage)
• Exchange Insurance
• DeFi (Decentralized Finance) Protocol Insurance
• Smart Contract Failure Insurance
• Stablecoin & Token Insurance

Coverage Types Covered:
• Crime & Theft Insurance
• Specie Insurance (Direct Asset Loss)
• Professional Liability (Errors & Omissions)
• Directors and Officers (D&O) Liability
• Cyber Liability & Data Breach
• Business Interruption

End Users Covered:
• Cryptocurrency Exchanges
• Custodians & Wallet Providers
• Blockchain Foundations & Protocols
• Mining Pools & Validators
• Institutional Investors
• Fintech Companies & Payment Processors

Policy Durations Covered:
• Annual Policies
• Short-Term / Project-Specific Policies
• Dynamic / Real-Time Coverage

Distribution Channels Covered:
• Direct Insurance Providers
• Brokers & Intermediaries
• Reinsurance Companies
• Platform-Embedded Insurance (via Exchanges/DeFi)

Regions Covered:
• North America
United States
Canada
Mexico
• Europe
United Kingdom
Germany
France
Italy
Spain
Netherlands
Belgium
Sweden
Switzerland
Poland
Rest of Europe
• Asia Pacific
China
Japan
India
South Korea
Australia
Indonesia
Thailand
Malaysia
Singapore
Vietnam
Rest of Asia Pacific
• South America
Brazil
Argentina
Colombia
Chile
Peru
Rest of South America
• Rest of the World (RoW)
Middle East
Saudi Arabia
United Arab Emirates
Qatar
Israel
Rest of Middle East
Africa
South Africa
Egypt
Morocco
Rest of Africa

What our report offers:
- Market share assessments for the regional and country-level segments
- Strategic recommendations for the new entrants
- Covers Market data for the years 2023, 2024, 2025, 2026, 2027, 2028, 2030, 2032 and 2034
- Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
- Strategic recommendations in key business segments based on the market estimations
- Competitive landscaping mapping the key common trends
- Company profiling with detailed strategies, financials, and recent developments
- Supply chain trends mapping the latest technological advancements Show more