MiCA compliance. Protection that goes further.
The Markets in Crypto-Assets Regulation (MiCA) has created a new regulatory framework for Crypto-Asset Service Providers operating across Europe.
Elmore provides specialist insurance for CASPs, helping businesses meet their MiCA insurance requirements while protecting against the wider professional, cyber, crime, management and digital asset risks they face.
Specialist insurance for crypto-asset service providers
MiCA requires CASPs to maintain appropriate prudential safeguards through own funds, insurance or a combination of both.
Insurance can do more than help satisfy a regulatory requirement. Properly structured, it can transfer meaningful risks away from the business while allowing capital to be deployed elsewhere.
Whether you are applying for MiCA authorisation, reviewing your insurance after authorisation or expanding an established CASP, Elmore can help structure appropriate protection around your business.
MiCA professional indemnity
Cyber insurance
Crime insurance
Directors and officers
Digital asset insurance
View our guide to MiCA insurance
Meet the prudential requirement while retaining the underlying financial risk within the business.
Use qualifying insurance to transfer defined risks to an insurer while potentially preserving capital for other business purposes.
MiCA permits prudential safeguards to be maintained through own funds, qualifying insurance or a combination of both, subject to the applicable requirements.
For growing CASPs, the decision can therefore be about more than regulatory compliance – it can form part of a wider capital and risk-management strategy.
Specialist insurance for a changing digital asset market
Elmore has worked with digital asset and financial technology businesses as the regulatory and insurance markets around them have evolved.
We combine specialist knowledge of crypto-asset risks with access to international insurance markets to help CASPs build protection appropriate to their activities.
MiCA expertise
Insurance structured around the requirements and risks facing regulated CASPs.
Specialist markets
Access to insurers with appetite and expertise for digital asset businesses.
Broader protection
Professional Indemnity, Cyber, Crime, D&O and Digital Asset risks considered together.
International reach
Support for businesses operating across Europe and internationally.
MiCA Insurance FAQs
What is MiCA Insurance?
MiCA insurance is specialist insurance designed to support Crypto-Asset Service Providers in meeting applicable insurance and prudential safeguard requirements under the Markets in Crypto-Assets Regulation.
The core cover is generally Professional Indemnity Insurance, although a CASP’s broader insurance programme may also include Cyber, Crime, Directors & Officers and Digital Asset Custody insurance.
Does every CASP need Professional Indemnity Insurance?
MiCA permits CASPs to meet applicable Article 67 prudential safeguard requirements using own funds, Professional Indemnity Insurance, or a combination of both.
The appropriate structure will depend upon the CASP’s regulatory requirements, business model and financial circumstances.
Can the performance of an AI model be insured?
Potentially, yes.
Specialist insurance markets are developing solutions that can protect against defined AI model underperformance. These can support AI providers offering performance commitments to customers or companies relying on AI for critical internal processes.
Eligibility and coverage depend on the AI model, use case, available performance data and underwriting assessment.
How much MiCA insurance do I need?
Article 67 links a CASP’s prudential safeguards to the higher of the applicable permanent minimum capital requirement or one quarter of the previous year’s fixed overheads.
The amount and structure required therefore depend on the individual CASP and may change as the business develops.
Can insurance replace own funds?
MiCA allows prudential safeguards to be maintained through own funds, Professional Indemnity Insurance or a combination of both, subject to the applicable requirements.
A CASP should determine the appropriate structure with its regulatory and professional advisers.
Elmore can advise on the insurance component and structure appropriate cover for consideration.
Why use insurance instead of relying entirely on own funds?
Own funds provide a balance-sheet buffer but leave the CASP retaining the underlying risk.
Insurance can transfer defined operational and professional risks to an insurer while potentially reducing the amount of capital that needs to be committed solely to prudential safeguards.
Is MiCA Professional Indemnity enough?
Not necessarily.
Professional Indemnity primarily addresses claims arising from professional errors, omissions and failures.
CASPs can also face cyberattacks, theft, employee dishonesty, management liability and loss of digital assets.
A broader programme may therefore incorporate Cyber, Crime, D&O and Digital Asset Custody insurance.
What happens to my insurance after MiCA authorisation?
The insurance programme should be reviewed as the CASP develops.
Changes in fixed overheads, services, transaction volumes, assets under custody, technology, jurisdictions and other exposures can affect both the risk and appropriate insurance structure.
Can Elmore insure CASPs throughout Europe?
Elmore works with CASPs across Europe and can arrange specialist MiCA insurance through its European insurance operations, subject to applicable regulatory permissions, insurer appetite and underwriting.
What information will insurers need?
Underwriters are likely to consider information including:
- MiCA authorisation and regulated activities
- Corporate structure and jurisdictions
- Revenue and fixed overheads
- Customer and transaction volumes
- Assets under custody
- Wallet and private-key arrangements
- Cybersecurity controls
- Governance and risk management
- Outsourcing and third-party providers
- AML and financial crime controls
- Claims and incident history