Coinbase Is in Talks to Launch Its Own Insurance Company
Cryptocurrency exchange Coinbase is in talks to set up its own regulated insurance company with the help of insurance broker giant Aon, industry sources told CoinDesk.
Establishing “captive” insurance subsidiaries, wholly owned by the firm being insured, is a time-honored way for corporations to reduce costs and improve access to reinsurance markets (a form of insurance purchased by insurance companies in order to mitigate risk). Nearly all Fortune 500 companies and thousands of midsize firms maintain captives, according to a December 2018 article in trade publication CPA Journal.