Bitcoin “What’s New in Insurance” Series: Part 1

Ty Sagalow, President of Innovation Insurance Group, introduces “What’s New in Insurance”, a new segment on WRIN.tv that will look at new and emerging risks, new product and service developments as well as new ideas shaping risk management.

In the first of a 3 part installment of “What’s New in Insurance”, Mr. Sagalow looks at Bitcoins, the peer-to-peer payment system that uses open-source software.

Recently, Great American Insurance introduced a new fidelity insurance policy for Bitcoin theft.   According to Ty “…the market is still evaluating the policy…its terms and conditions as well as which companies are eligible to purchase it. “

Bitcoins have been around since 2009, when the first open-source peer-to-peer transfer software was first invented.” Ty explains that a” Bitcoin has no physical presence.” According to the U.S. Treasury Department it is a virtual currency.   Bitcoin has value, Ty says, “because…millions of people throughout the globe say it has value….A transfer or purchase using bitcoins has about 2% fee, (much lower than a credit card) and is anonymous.” 

Mr. Sagalow believes Bitcoins are here to stay. In the next edition of “What’s New in Insurance”, Ty will look at the risks posed by Bitcoins, and what new products are emerging to manage the risk.