A lack of insurance capacity for cryptoassets and blockchain is holding back these innovative industries, according to new US insurer Evertas.

Chicago-based Evertas – formerly known as Block Re – claims to be the world’s first cryptoasset insurer, with its leading executives including a founding member of insurance innovator Lemonade and experts in cryptoassets and blockchain.

The company says a lift in insurance capacity is needed to encourage the adoption of investments and projects in this space. It says risk committees at established insurers will not approve them.

“Unless the insurance sector can address these challenges and provide greater capacity, the cryptoasset and blockchain industries will suffer.”

“With so little capacity from insurers, one significant covered incident could kill the market for long periods of time,” Evertas founder and CEO J. Gdanski said.

“Insurers need to invest in building their knowledge of cryptoassets and their teams of underwriters in this space,” he says.

In a lengthy statement looking at the cryptoasset, blockchain and technology space, Evertas says the risks associated with cryptoassets are more complicated than the insurance sector perceives, and underwriting in the field lacks scale, automation and efficiency.

“These complexities have contributed to inconsistent underwriting, making it hard to be repeated and therefore renewals potentially more difficult in the long run.

Evertas says it has spent two years developing methodology, frameworks and risk modelling to foster long-term, profitable underwriting around cryptoassets.