As violent attacks on cryptocurrency holders increase, insurance companies are creating new kidnap and ransom (K&R) insurance policies tailored for the crypto sector. At least three firms focused on crypto insurance are preparing to launch these policies, responding to heightened fears of violence following several high-profile incidents, including kidnappings and attempted thefts targeting crypto executives. Rebecca Rubenfeld from AnchorWatch noted that concern over physical safety was prevalent at the recent Bitcoin Conference, with expectations to offer K&R coverage by fall. Traditionally, K&R insurance is a lucrative segment for insurers due to its low claim frequency but high severity risks. Pricing for this coverage will depend on individual assessments of clients' security measures. With recent violent incidents in South Korea and France underscoring the growing risks, crypto executives are increasingly seeking personal security services alongside insurance.

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